Manufacturing, Construction,  And Agriculture Industries Aided Economic Growth

On Thursday, the Minister of Finance published its key report – the Pakistan Trading Economics – as the economy is moving towards restoration despite the ongoing pandemic.

The study gives an optimistic economic picture that is primarily economically driven by foreign resources supported by local variables such as the large-scale manufacturing, agricultural, and building sectors.

The relevance of the IT industry is also stressed in the survey. During his address at the introduction of the study, the Minister of Finance also proposed a stimulus package for this sector.

Here are some highlights on the overall economic condition in Pakistan, a summary of the government's policy activities, and the detailed trends of growth and investment in this fiscal year.

Economy Background

The administration adopted several major political choices, such as monetary and fiscal measures, intelligent locks, quick vaccines, etc. In partnership with the provinces, the National Command and Operating Center (NCOC) was accountable for making crucial decisions.

The govt's decision-making process has brought the problem under control, and according to the survey report, the number of COVID-19 instances is presently on the downside.

The Roshan Digital Account (RDA) foreign currency inflows reached the 1 trillion Dollar level. The workers' funds have previously increased by 29% and by 24.2 billion dollars in July-April2021.
Economic overview

Devices have grown to $16 billion – up to a 4-year high – from the State Bank of Pakistan's (SBP).

Considering the considerable performance of the Task Force for Financial Action (FATF) and export and e-commerce potential, Pakistan has been included in the sellers' list of Amazon.

Due to the reactivation of domestic economic activity and the ongoing comprehensive tax policy and administrative changes, the Federal Revenue Board (FBR) increased considerably by 18 percent during July-May FY2021.

The room boasts upper walls clad of the first three-fourths in 12 years stayed at 1% of GDP – the greatest level.

The PSE held an ever-high market cap of 2,21 trillion shares at the Pakistan Stock Exchange (PSX), on 27 May 2021, with a single shareholding. The PSX won the distinction of 'the best asian stock market' and the fourth best-performing market in the world in 2020 because of its tremendous growth.

During the current government's time, the domestic debt profile improved dramatically, as short-term debt reduced to 23% at the end of March 2021, compared to 54% at the end of June 2018.

Over 80% of domestic total income (Pakistan Development Bonds and Government Ijara Sukuk) was in the first nine months of Extent and impact through medium- and long-term domestic debt loan instruments.

After more than three years, Pakistan has successfully raised $2.5 billion via euro bonds into the international capital markets.

At 7.0%, the policy rate remains steady, which improves entrepreneurial feelings and stimulates economic activity to recover employment.

In July-Fept. 2021, a network of 143 km of gas transmission, 2.616 km of distribution networks, and 886 km of service lines were created for the two gas utility enterprises (SNGPL and SSGCL) and linked 70 towns to the gas network. Over that period, an additional 304,573 gas pipes were supplied nationwide, comprising 303,243 home pipes, 1,020 commercial, and 310 industrial pipes.

During July-April FY2021, the installed power output rose to 37,261 MW compared to the previous year, with an extra 1,289 MW. Similarly, it climbed to 102,742 GWh, and during the current time, it was discussed an additional 6,360 GWh generation. As a result, in July-March FY 2021, the proportion of the electrical industry in the same time the previous year had climbed to 26.3per cent.

The number of cell phone customers in Pakistan (active SIMs) has reached 182 million by the end of March 2021, increased to 167,3 million by the end of June 2020.

The number of broadband customers (BB) reached 100 billion by the end of March 2021. In March 2021, overall BB penetration was 47.6% in Pakistan, a growth of which.

In recognition of its vital policy for strengthening the economy and protecting lives and livelihoods, the International Monetary Fund (IMF) has recognized this. It is also reported that the delayed US$6 billion loan package will restart between the IMF and Pakistan.

During the year, Moody's, Fitch, and Standard&Pover's all three main rating agencies confirmed their sovereign rating to Pakistan. This acknowledgment reflects the government's good policies and trust in the country's economic prospects by these top international organizations.

Investment and growth

Pakistan's economic growth in FY2021 rebounded sharply and registered 3.94% growth, much higher than in the previous two years (-0.47 and 2.08% respectively for FY2020 and FY2019) and beyond the objective (2.1% for the FY2021).

The start of the FY2021 was better to limit the pandemic and rebound economic activity. Still, it was more difficult to manage the pandemic while maintaining economic activity with the second wave in late-October 2020 and the third wave in March 2021.

The preliminary GDP growth rate was expected to be 3.9% because of a 2.8% increase on farmersin3.6% in the industrial sector, and 4.4% in the service sector, based on an economic rebound in practically every field of FY2021.

Moreover, GDP was at Rs 47,709 billion at current market values, increasing 14.8 percent over the past years during the financial year in 2021. (Rs 41,556 billion). In the meantime, the dollar remained $299 billion, above last year's worth ($263 billion).

The GDP has had a considerable proportion of private consumption. This huge proportion suggests the consumption-driven economy of Pakistan. Better consumer trust can affect domestic production through increased long-term demand.

In FY2021, private consumption growth remained 17% compared with 4% the previous year. However, public consumption growth remained 11,4%, lower than last year's 19,3%, mostly due to decreased interest payment increase and wasteful spending squandering.

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