Pakistan Achieves 2.38% GDP Growth, Misses 3.5% Target in FY 2023-24

Pakistan has acknowledged falling short of its economic growth target for the fiscal year 2023-24, achieving a GDP growth of 2.38 per cent against the projected 3.5 per cent. This revelation came from the Economic Survey of Pakistan 2023-24, unveiled by Finance Minister Muhammad Aurangzeb during a press conference. The document highlights the country's socio-economic achievements and challenges over the past year, marking a shift from negative growth in FY 2023 to positive growth in FY 2024 due to prudent policy management and gradual economic recovery.

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Despite this positive turn, the growth did not meet the government's expectations, primarily due to the underperformance of the industrial and services sectors. The agriculture sector, however, exceeded its targets significantly, recording a 6.25 per cent growth against an anticipated 3.5 per cent, marking the highest growth in this sector in the last 19 years. Conversely, industrial and services sectors grew by only 1.21 per cent each, falling short of their respective targets of 3.4 per cent and 3.6 per cent.

The fiscal deficit remained steady at 3.7 per cent, mirroring last year's figures, while the trade deficit was recorded at 4.2 per cent. Revenue collection from July to March reached 9.79 trillion, with tax revenues at Rs 7.26 trillion and non-tax revenues at 2.52 trillion. Notably, inflation saw a reduction to 11.8 per cent as the impact of prolonged inflation began to subside steadily since the third quarter of FY2024.

The survey also noted an increase in GDP at current market prices to Rs.106,045 billion in FY2024, up by 26.4 per cent from Rs.83,875 billion in the previous year. This economic activity and an appreciation in the exchange rate contributed to a rise in per capita income by USD 129 to USD 1,680 from USD 1,551 last year. However, investment to GDP ratio saw a slight decrease to 13.14 per cent in FY 2024 from 14.13 per cent in FY 2023, attributed mainly to contractionary macroeconomic policies and political uncertainty.

The saving to GDP ratio also experienced a slight dip to 13.0 per cent in FY2024 from 13.2 per cent in FY2023. Amid these economic challenges and achievements, Finance Minister Muhammad Aurangzeb emphasized the government's commitment to improving economic conditions by offloading loss-making state-owned enterprises, including privatising Pakistan International Airlines.

This economic survey sets the stage for the upcoming national budget announcement on June 12 Wednesday, providing a comprehensive overview of Pakistan's current economic landscape as it navigates through various socio-economic challenges towards recovery and growth.