Pakistan Economic Crisis 2023: The economy of the neighboring country Pakistan is getting worse. Despite being the 5th largest country in the world in terms of population, Pakistan could not make proper use of its ‘man power’. Due to the nature of corruption and taking loans, its economic growth rate has also stopped. It has a foreign debt burden of more than 100 billion dollars and it has been revealed in the latest economic survey that in 2022-23, the Pakistani economy has further shrunk.
According to Pakistan’s SamaTV, Pakistan’s economy is worth $341.50 billion. This is also when its population has exceeded 23 crores, in terms of the number of youth, its growth rate should have increased, but in the economic survey, its economic growth remained 0.29% against the target of 5% in the current financial year. . Not only this, Pakistan’s per capita income has also come down to $1,568 in this financial year.
At the same time, the population of India is slightly more than 142 crores and the size of its economy has increased to more than 3 trillion dollars. If we compare it with Pakistan, the size of the Indian economy will be about 10 times more than that. India is currently the fifth largest economy in the world and is now behind only the US, China, Japan and Germany. The estimated Gross Domestic Product (GDP) value of India is around $3.5 trillion. On the other hand, globally Pakistan’s GDP is $341.50 with 42nd ranking. Surprisingly, earlier in 2021-22, the size of its economy was $375.4 billion.
Disappointment found in many sectors including agriculture sector
According to the report of the economic survey published on the portal of SamaTV, the target for the agriculture sector in Pakistan was set at 3.9%, although the growth rate was 1.55%. There the target for major crops was 3.5%, their performance registered an increase of -3.20%. Similarly, the target was 6% for cotton, which registered a performance of -23.1%.
The target was set for the industrial sector at 5.9%, but it registered a performance of -2.94%. It is said that major industries in Pakistan gave a performance of -7.98% against the target of 7.4%. The target for the construction sector was 4%, and it gave a performance of -5.53%. Apart from this, the transport sector achieved 4.73% against the target of 4.5%. Talking about the real estate sector, the target was fixed at 3.8%, while the performance was 3.72%. The performance of Public Administration Sector was recorded at -7.76% against the target of 4%.
Pakistan could export only $25.36 billion
According to the report, the inflation rate in Pakistan reached 29% during July-March. There the amount of GDP in the current financial year was more than 84,600 billion dollars. However, even the export target could not be achieved during the current financial year. From July-May this financial year, the export volume was recorded at $25.36 billion.
Pakistani GDP decreased by $ 34 billion last year
The Economic Survey states that the size of Pakistan’s economy has decreased to $341.50 billion. Compared to last year, there has been a decrease of $ 34 billion in GDP in this financial year. The size of the country’s economy in 2021-22 was $375.4 billion. There, the per capita income has also come down to $1,568 in this financial year. Compared to the previous year, this figure saw a decrease of $198. Pakistan’s per capita income in the last financial year was $1,766.
The size of the economy increased in Pakistani rupees
If the size of the country’s economy is seen in Pakistani rupees, it has increased to Rs 84,760 billion. Compared to the previous financial year, the size of the economy saw an increase of Rs 10,678 billion. At the same time, an increase of Rs 75,418 has been seen in the per capita income in local currency. In the year 2022-23, the per capita income was recorded at Rs 388,755. And, in the previous year the per capita income was Rs.313,337.
Shahbaz government gave this reason behind the plight
During the economic survey conducted in Pakistan, the government there said that during the current financial year the country’s economy had to face natural calamities like floods. In addition, political instability affected the economy, while the Russia–Ukraine war resulted in a rise in global commodity prices. This increased the inflation rate.
