By Abdul Wajid Khan

ISLAMABAD, August 22 (INP-WealthPK) The government is focusing on putting the economy on a higher growth trajectory through higher investment, efficiency and enhanced productivity to achieve the GDP growth of 6-7% in the medium term, reports WealthPK.

According to a report of the Ministry of Finance on 75 years of economic journey, Pakistan has made significant headway in spite of many challenges that it has faced since its inception.

It said the nation was able to transform itself into a semi-industrial economy and a hub for business activities.

“Our economic vision is to shape a brighter future for Pakistan's economy by improving efficiency, enhancing productivity, increasing investment, creating wealth by unleashing the entrepreneurial energies of the private sector,” the report said.

Highlighting its roadmap for ensuring sustained and inclusive economic growth, the ministry said the focus was to ensure structural changes by focusing on export growth instead of import substitution; increase GDP growth to 6-7% in the medium term, sustain growth rates over the medium and long-term without creating pressure on the balance of payments; and reduce poverty by ensuring the higher and inclusive growth and strengthening the social safety nets.

It said the government was working to improve tourism and information technology; improve investment climate and attract domestic and foreign investment through effective implementation of investment promotion strategy; and establish special economic zones focusing on export promotion, import substitution and employment generation.

The government is also focusing on making the youth the nation’s strength through various skill development programs. To realize these objectives, short, medium and long-term economic programs are underway for all sectors of the economy including agriculture, industry and services.

The ministry said the aspiration was to put the economy on a higher growth trajectory through higher investment, efficiency and enhanced productivity. The measures are focused on establishing and strengthening the economy that is not only self-reliant, but also capable of competing with its competitors around the globe.

These measures will enable people, particularly those in private sector, to play their respective roles, provide equal opportunities to all and assign the government a very specific role as a facilitator, regulator and performance driven service provider.

According to the highlights of the report, at the time of independence in 1947, Pakistan inherited only 34 industrial units out of the 921. Pakistan’s nominal GDP rose from $3bn to $383bn, per capita income increased from $86 to $1,798, exports rose from $163.9 million to $32.5 billion and tax revenues increased from Rs. 0.31 billion to Rs. 6,126.1 billion during the period from 1950-2022.

In percentage term, GDP growth increased to 5.97% in 2022 from 1.8% in 1950.

Pakistan recently began to increase the mobility, connectivity, and versatility of its digital services. There was a 15% increase in internet usage after the lockdown was imposed.

In agriculture sector, wheat production in 1948 was 3.354 million tonnes which increased to 26.394 million tonnes in 2022, rice production from 0.693 million tonnes to 9.323 million tonnes in 2022, maize production from 0.359 million tonnes to 10.635 million tonnes in 2022, sugarcane production from 5.529 million tonnes to 88.651 million tonnes in 2022, and cotton production from 1.156 million bales to 8.329 million bales in 2022. Water availability in 1965-66 was 63.9 MAF, which increased to 131.0 MAF in 2021-22.

Agriculture credit disbursement was Rs4.3 million in 1952-53 which increased to 1,219.3 billion in Jul-May2021-22.

In the industrial sector, during early 1950s, the share of manufacturing was 80%; construction 16%; mining & quarrying 2%; electricity generation and distribution and gas distribution 2%, while in 2022, the share of manufacturing is 65%. The share of construction, electricity generation and distribution and gas distribution reached 13% and the share of mining & quarrying stood at 9%.

In fiscal sector, the size of the federal public sector development program (PSDP) increased from Rs45.4 billion to Rs900 billion during 1990-2022. In external sector, foreign direct investment increased from $1.2 million in FY1950 to $1,867.8 million in FY2022.

Remittances increased from $0.14 billion in FY1973 to $31.2 billion in FY2022, exports from $162 million in FY1950 to $31.8 billion in FY2022, and imports from $276 million in FY1950 to $80.2 billion in FY2022.

In the energy sector, electricity generation in FY1949 was 41GWh which increased to 123,248 GWh in FY2022. Electricity consumption of household sector was 635GWh in FY1972 which increased to 55,722 GWh in FY2022.

In agriculture, electricity consumption was 997 GWh in FY1972 which increased to 10,238 GWh in FY2022, while electricity consumption in industrial sector increased to 29,954 GWh in FY2022 from 2,855 GWh in FY1972.

Literacy rate increased to 62.8% in 2020-21 from 16.4% in 1951. In the health sector, the number of Hospitals (Public) increased from 292 in 1947 to 1,276 in 2021.

Infant mortality of 150-180 (per thousand) in 1947 decreased to 58.9 (per thousand) in 2021. Health expenditures increased from Rs1million in 1947-48 to Rs 657,185 million in 2020-21. Life expectancy increased from 50 years in 1970 to 67.4 years by 2020.

In transport and communication, telephone and mobile users increased from 15,200 in 1947 to 194.2 million in 2021. Registered vehicles vs. road lengths increased from 31,892 in 1947 to 32.4 million in 2021.

The employed labour force increased from 16.24 million in 1964 to 67.25 million in 2020-21, while poverty headcounts decreased from 40.24% in 1969 to 21.9% in 2018-19.

Credit:Independent News Pakistan-WealthPk