Finance Minister Ishaq Dar is presenting the Economic Survey for the outgoing fiscal year (FY23) at a press conference in Islamabad.
According to the finance minister, the country registered gross domestic product (GDP) growth of 0.29 percent for FY23 against the target of 5 percent and growth of 6.1 percent in FY22.
Growth targets missed
The agriculture sector registered a growth of 1.55 percent in FY23, compared to growth of 4.27 percent last year. Industry growth came in at 2.94 percent compared to 6.83 percent in FY22.
The manufacturing sector registered negative growth of 3.91 compared to growth of 10.86 percent in FY22 while construction sector registered negative growth of 5.53 percent compared to growth of 1.90 percent last year.
The services sector growth came in at 0.86 percent compared to 6.91 percent in FY22, with wholesale & retail trade posting negative growth of 4.46 percent, transport and storage posted 4.73 percent growth while information & communication sector growing by 6.93 percent.
The average CPI Inflation rate for the Jul-May FY23 period came in at 29.2 percent against 11.3 percent in the same period of the previous fiscal year. The inflationary pressures are emanating from weaker exchange rate, supply disruptions created by flood damages, higher global food prices, and broader tariff reforms for both electricity and fuels.
The nominal GDP increased to Rs. 84,658 billion in FY23 compared to Rs. 66,624 billion last year, registering a growth of 27.1 percent.
Per capita income
The per capita income stood at $1,568 in FY23 compared to $1,765 last year, down 11.2 percent due to currency depreciation, lower growth, and rising population.
The fiscal deficit during Jul-Apr FY23 came in at 4.6 percent of GDP compared to 4.9 percent of GDP last year.
Primary balance during Jul-Apr FY23 posted a surplus of Rs. 99.1 billon compared to deficit of Rs. 890.2 billion last year, reflecting a slowdown in the growth of non markup expenditures.
Total revenue during Jul-Mar FY23 increased by 18.1 percent to Rs. 6,938.2 billion compared to Rs. 5,874.2 billion last year. Both tax and non-tax collection contributed to an increase in overall revenue.
Total Tax revenue (Federal and Provincial) during Jul-Mar FY23 grew by 16.5 percent to Rs. 5,617.7 billion compared to Rs. 4,821.9 billion last year on the back of a significant rise in Federal Board of Revenue (FBR) tax collection despite various economic challenges at the domestic and global levels.
Non-tax revenue during Jul-Mar FY23 grew by 25.5 percent to Rs.1,320.5 billion.
Expenditures under PSDP during Jul-Mar FY23 registered a decline of 1.8 percent to Rs. 1,014.0 billion compared to Rs. 1,032.7 billion last year.
FBR tax collection during Jul-May FY23 increased by 16.1 percent to Rs. 6,210.1 billion compared to Rs. 5,348.2 billion last year.
The finance minister said that FBR registered over 0.9 million taxpayers during the first nine months of FY23 against the target of 0.7. He said that the target of the broadening of tax base has been achieved during current fiscal year.
Money and Credit
Policy rate during FY22 increased by a cumulative 675 bps from 7.0 percent to 13.75 percent while the policy rate during July-April FY23 increased by 725 bps to 21 percent.
Broad money (M2) (1st July-12th May FY23) increased 7.3 percent to Rs 2,026.3 billion compared to Rs. 1,512.0 billion (growth of 6.2 percent last year).
This is a developing story.