The National Accounts Committee (NAC) has approved the revised estimate of Pakistan’s Gross Domestic Product (GDP) growth for the fiscal year 2020-21 (FY21) to 5.37 percent from 3.9 percent.
The meeting of the NAC, chaired by Minister for Planning, Development and Special Initiatives, Asad Umar, was held on Thursday to review the change of base of National Accounts from 2005-06 to 2015-16.
The Pakistan Bureau of Statistics (PBS) also shifted its economy’s baseline, which pushed the figure to 5.57 percent.
The minister also took to Twitter to announce that the revised GDP growth of 5.37 percent for FY21 was the second-highest growth in the last 14 years.
NAC approved revised estimate of GDP growth for 2020-21 . The growth in 2020-21 was 5.37%. This is the 2nd highest growth in last 14 years. Higher growth versus provisional estimates which were based on jul-mar numbers, was mainly due to very strong industrial growth in apr-jun.
— Asad Umar (@Asad_Umar) January 20, 2022
Due to improved coverage and better estimation of the input-output structure of industries, the gross value addition increased by Rs. 3.1 trillion in the base year 2015-16 from Rs. 27.4 to Rs. 30.5 trillion, showing an increase of 11.3 percent in the Gross Value Added (GVA) for the base year 2015-16.
This shows that in the previous base of 2005-06 economy was underestimated by 11.3 percent. Agriculture showed an increase of 8.3 percent from Rs. 6.7 to 7.3 trillion, the industry grew by 11.9 percent from Rs. 5.3 to 5.9 trillion, and services increased by 12.5 percent from Rs. 15.3 to 17.3 trillion.
With rebasing and level shift of the economy from Rs. 29.1 trillion to Rs. 32.7 trillion in 2015-16, the GDP at market prices increased to 55.5 trillion in 2021, and Gross National Income increased to Rs. 59.3 trillion. The Per Capita Income increased to Rs. 266,614 or $1,666 in 2020-21. The size of the economy reached $346.76 billion.
Since, 2020-21 was the recovery year after COVID 19, so all the industries have shown impressive growth.