New Delhi: Pakistan’s GDP grew faster than the target set by the previous Imran Khan government but the current finance minister and PML(N) leader Miftah Ismail is not happy “Unfortunately, the weak economic management of the previous government has resulted in the deterioration of the exchange rate, high inflation and widened the twin deficits, thus bringing Pakistan to the verge of a financial crisis”, Ismail has been quoted as saying in the Pakistan Economic Survey 2021-2022, the annual financial document that was released Thursday. However, not all are convinced by the minister painting the PTI government as all black.
Pakistan’s GDP grew at 5.97 per cent in 2021-22 against the PTI government’s set target of 4.8 per cent, Pakistan Economic Survey 2022 revealed.
Reactions were mixed, with some blaming the Imran Khan government for its failures and others wondering why he had to go.
Investment banker Mir Mohammad Khan said it was a mistake removing Imran Khan because Pakistan was ‘rising’ under his leadership.
The more I read The Economic Survey of Pakistan for last year. There is only one comment I can make:
You MESSED up removing @ImranKhanPTI
Pakistan was rising.
— Mir Mohammad Alikhan (@MirMAKOfficial) June 9, 2022
Adil Raja, a retired army major and columnist, said the survey proves Pakistan was progressing tremendously. “Then why was Imran Khan removed,” he said.
Economic Survey of Pakistan for FY2021-22, proves Pakistan was progressing tremendously, then:
Why was Imran Khan removed ?
Pakistan was ON track. Most of key economy targets over-achieved. Who was the Sherlock who decided let's remove govt; why?https://t.co/i3b0T7coJ5
— Adil Raja (@soldierspeaks) June 10, 2022
An editorial in Dawn said that the economy was on its path to ‘robust recovery’ from the days of the Covid-19 pandemic, before adding that the findings make it clear that it will “not be in any party’s control to set a firm direction for the economy for at least the next year”.
In a debate on Geo News, economist Khaqan Najeeb said the Imran Khan government provided a fiscal stimulus to recover from the pandemic-induced jolt to the economy. However, the recalibration or cooling off of the economy was necessary. The situation is currently in “code orange”, he said.
Also read: Imran Khan and his destructive populist politics dangerous for Pakistan’s security
Highlights from the survey
The 500-page survey report highlights the country’s post-pandemic growth amid Russia-Ukraine conflict. In the report, finance minister Ismail said that the economic impact of the Russia-Ukraine conflict is manifesting in terms of higher commodity prices, disrupted trade and supply chains, lower business confidence, and increased investors’ uncertainty.
“The fallout of conflict will contribute to a significant slowdown in global growth in 2022 and 2023. The global economic growth is projected to slow from an estimated 6.1 percent in 2021-22 to 3.6 percent in 2022-23,” Ismail said, as per the report.
He also said that the Shehbaz Sharif government has “inherited a fragile economy”.
The agriculture sector in Pakistan posted growth of 4.4 percent, while the Industrial sector recorded a growth of 7.2 percent in financial year 2022 compared to 7.8 percent growth in FY 2021. While total revenues reached 8.8 percent of the GDP as compared to 8.9 percent last year, total tax collection grew by 28.1 percent to reach PKR 4.821 billion as compared to PKR 3.765 billion in the previous year. Pakistan’s defence expenditure is 2.5 percent of the GDP this year as compared to 2.4 last year.
However, the highlight of the survey was that only 1.77 percent of the GDP was spent on the education sector.
The investment to GDP ratio rose to 15.1 percent from 14.6 percent in FY2021.