Economy

Across the $300 Billion Barrier: 5.3% GDP Growth Propels Pakistan Economy

Pakistan economy has crossed the $300 billion barrier — the provisional economic report for 2016-17 suggests. The growth rate 5.3 percent achieved during the period is highest since 2008, when the country faced a severe recession. The news puts Pakistan in an elite list of countries having total gross domestic product over $300 billion.

Gross Domestic Product List

The Gross Domestic Product (GDP) is the monetary value of all the goods and services that a country has produced in one year. The number is taken as a metric of strength for the economy of any specific country and helps maintain global currency control.

The figures released by National Accounts Committee (NAC) show that 5.28 percent growth occurred in 2016-17 until June 30. The numbers of the month are taken as calculated estimates and final adjustments will be made before the report becomes official

The top 5 countries by GDP excluding European Union according to 2015-16 include:

  1. United States
  2. China
  3. Japan
  4. Germany
  5. United Kingdom

The final figure will be released once in June financial numbers are closed.

Pakistan’s financial aspiration

Pakistan’s economy is finally managing to come out of the recession that it was facing since 2008. The economic growth of 5.3 percent is in line with growth numbers during that period. The government is planning to ensure that the growth continues hence GDP growth target for 2017-8 is set at 6 percent.

The initial number of 5.3 percent however is still bad news for the PML-N government which target 5.7 percent for the current year.

The Industrial targets set for the year have all remained unmet and continue to remain a case of concern for the government. The services sector has seen a growth of 67 percent and remains the major contributor in the current growth. The agricultural sector too has remained strong with 3.5 percent growth within the sector.

Challenges For 2017-18

Unemployment issue remains the top concern as anything below 6 percent growth for next year will mean increase in unemployment rate. Foreign direct investments and declining exports are also going to hamper economic growth. The government maintains that negative trade balance is a result of infrastructure machinery import for CPEC related projects. The likes of which are supposed to reduce over the next year lessening the trade deficit.

The good news of economy crossing the $300 billion mark remains and something to feel excited about for once.

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