Pakistan's Economy Contracts by 0.38% for the first time in 68 years – RS News

Pakistan’s Economy Contracts by 0.38% for the first time in 68 years

The economy of Pakistan has marginally contracted by 0.38% in the 2019-20 fiscal year ending on June 30 for the first time in 68 years. This is the impact of the novel coronavirus. Only the agriculture sector has grown by 2.7%. The industrial and services sectors saw negative growth, down to negative 0.38% in the outgoing fiscal year.

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Also, the per capita income in dollar terms dropped to 1,366, a contraction of 6.1%. However, it increased in rupee terms to Rs214,539.

The provisional gross domestic product (GDP) growth rate was approved by the National Accounts Committee for the outgoing fiscal year. NAC reduced the provisional growth rate of 3.3% to 1.9% for the fiscal year 2018-19. This was the lowest in 11 years.

Even before the COVID-19 hit our economy, the quest of SBP for hot foreign money has negatively impacted our economy. Now, neither the hot foreign money remained in Pakistan nor the country was able to achieve sustainable economic growth.

Dr. Hafiz Pasha, the former finance minister disputed that claim of the PTI government of 3.3% growth rate. He said that the growth in PTI’s first year in government was 1.9%. Now it seems that his assessment was true and it has been admitted by the government.

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