Wednesday, May 21, 2008

By our correspondent

ISLAMABAD: The per capita income has crossed ‘psychological barrier’ and touched $1,027 during the outgoing fiscal year 2007-08 against $878 in the last financial year, The News has learnt reliably.

Total size of Pakistan’s economy went up to $170.8 billion in the outgoing financial year 2007-08 against $143.9 billion in the previous fiscal 2006-07, registering $26.9 billion nominal growth.

During the last financial, the provisional per capita estimates claimed by the Shaukat Aziz regime were $925 but it reduced to $878 in accordance with the finalised per capita income related figures. The overall CPI based inflation is projected at 10.5% in the outgoing financial year 2007-08.

According to working paper forwarded to Annual Plan Coordination Committee (APCC) after the finalisation of figures done by the National Accounts Committee (NAC) and its details available with ‘The News’ reveals that the major crops of agriculture sector witnessed negative 1% growth in the outgoing fiscal year owing to lower than expected output in wheat and cotton crops.

The minor crops also registered negative 2.97% growth. The negative growth in both major as well as minor crops resulted into lower agriculture growth of only 1.49% in FY 2007-08. According to wheat estimates, the production is estimated at 21.7 million tons in the current fiscal against the production of 23.3 million in the previous financial year 2006-07. Keeping in view wheat shortages, the Gilani government had decided to import 2.5 million tons wheat in the aftermath of declining trend in its prices in the international market. Pakistan had imported 1.7 million tons wheat in the current fiscal year with estimated cost of Rs60 billion.

The production of rice stands at 5.5 million tons in the ongoing financial year 2007-08 against envisaged target of 5.7 million tons. The cotton production is estimated at 5.9 million tons against 6.5 million tons in the previous fiscal year. The production of sugarcane registered an increase as it stood at 63 million tons in FY 2007-08 against 54 million tons in last fiscal 2006-07.

A top official told this correspondent that the size of Pakistan economy in real GDP terms stands at $94.9 billion (Rs5,822 billion) at market price base in the outgoing financial year against $90.6 billion in the previous financial year. At fixed rate, the real GDP size of Islamabad’s economy touched $89.5 billion (Rs5,493 billion) in the ongoing financial year 2007-08.

In terms of nominal GDP growth, the size of Pakistan’s economy stood at $170.8 billion in the outgoing financial year against $143.9 billion in the previous financial year. The nominal growth of Pakistan’s economy achieved 19.7% growth in the ongoing financial year 2007-08.

The sources said the size of the economy witnessed an increase owing to re-basing of national accounts done by the previous regime by 2001. According to estimates firmed up by the NAC related to investment, the country fetched 13% growth in the investment in the FY 2007-08 compared to the previous financial 2006-07.

The growth in public investment stood at 28% in the FY 2007-08 against 20% growth registered in the previous fiscal. The private sector investment declined as it stood at 10% in FY 2007-08 against 13% growth in the previous fiscal 2006-07. Regarding an increase in per capita income, the sources said that it does not show that income of whole population has been increased.


http://thenews.jang.com.pk/top_story_detail.asp?Id=14840

Now that we have crossed the $1000 per capita mark, we are the second richest country in south asia after Sri Lanka per capita, Not only that, Pakistan is now a 'middle income' country.

A good achievement.

I am not sure if I should belive this news.

I am willing to believe, sure Nawaz tried to screw millions of Pakistanis into starvation and PPP goons destroyed everything in sight.

But lets face it, a lot of people who are sincere to Pakistan and put in place by the previous regime are still in control of their or some other important portfolios or appointments.

and SA was in control of the economy for Six of the 12 months in the last fiscal year.

Well done Shaukat Aziz.

Pakistani nation owes you.

Its probably true, not that it means much. The economy is still in a pathetic situation (compared to what it should be), and with the current 'democratic' powers in place, I don't see that changing. At least they got rid of Dar...

Pakistan has nuclear technology and I did not know that it is a such a poor country. 1000 per hed GDP is more like bad
news that should be kept hidden.
I mean its 1000 not 10.000.

Turkey and Iran crossed 10.000 in GDP on a PPP basis and it is still not a big deal.

This is a result of our poor leadership and terrible business managers. We need to increase the quantity and quality of our education insititutes, more schools, more colleges and more universities. We need to break the back of the wadera system and kick these criminals into the farms and out of government. Its time Pakistan army took over failing government organistaions by providing leaders, managers and training and kicking out corruption. Its time Pakistan government started nationalising failing organisations and selling off successful ones. We don't need forign investment as all they do is suck capital out and the overall ratio of gain is very poor.

Its unbelievable with Africa just down the road our businesses and government are unable to increase trade. Its unbelievable that with oil just off our shores that we can't build oil platforms to to drill the oil out. We need to break the status quo and allow the people to gain through their hard work and stop their exploitation. We need true Islamic fairness and justice and stop following the european/ american model.

Oil just outside the shores? Any links or something?

You are confusing nominal gdp per capita and Purchasing power parity per capita, Pakistan PPP per capita is $3800 whilst its nominal per capita income is now over $1000

Even when considering nominal gdp, Malaysia, Iran, Turkey, S.Arabia - we are talking about $6000 to $7000 nominal or more.

With $1000, that means rising a head just above poor. That means pulling a head out of sub-Saharan poverty sand.
That means replacing a donkey cart with 3 wheel rickshaw.
And in the same time Pakistan has smart people who can enrich uranium to 90% and that's not easy task.

Its really shameful.

Know something else?

1) Smaller populations: All of the above
2) Oil/gas: Iran & Saudi Arabia
3) Proximity to developed states: i.e. Gulf Council, Asian Tigers & E.U.
4) Lack of larger enemies with nuclear weapons: no India to deal with.

Why? are we not wearing clothes?

we are doing the best we can. KSA & Iran & Turkey have many other issues unheard off, may be they should tackle on teh color of hijab first before telling us other stories

I still think Pakistan's overall situation is impressive given the fact that Dar tried his best to lose everything in past couple of weeks. Think about it,

1. Not in the best of neighbourhoods,
2. 160 million mouths to feed
3. A war going on in our FATA region
4. Constant threat from our eastern border and western border.
5. Political mess...

Given the above, the fact that we're a middle income countries is quite an achievement. Ofcourse there's more to do though.

Just a reference to the persian gulf. There is no reason why we can't tap into existing oil fields which are in international waters or find new ones.

These countrys that you are talking about apart from Malaysia have oil. Turkey has access to Europe since indepedence.

Take away the oil from Saudi or any GCC country and check GDP figures, take away Irans oil and gas then check GDP.

And none of these countrys defeated the Soviet Union in 8 years like Pakistan did and took 3 million refugees.

And yes Pakistani people are clever your right.

Well what's the use of increased Per Capita income when the inflation have increased many times more than the increase in Per Capita!! Meaning poors are getting poorer not richer!!

We have the second biggest population in the muslim world and fourth biggest GDP in the muslim world. We are ahead of UAE, SUADI ARABIA and many other oil rich countries.

As pointed out already we dont have oil and that is the difference between us and them..

We have been sanctioned and west done everything to kill us and at the same time we were fighing and enemy 7 times our size. Have you ever wondered y USA is always sacred to give is F-16 and other techs while it throws same tech at other states.

What we have achieved is through our hard work and we went through tough time and again we are going through tough time. Its only becoz Allah has protected us this far and will do so.

We have the second biggest population in the muslim world and fourth biggest GDP in the muslim world. We are ahead of UAE, SUADI ARABIA and many other oil rich countries.

As pointed out already we dont have oil and that is the difference between us and them..

We have been sanctioned and west done everything to kill us and at the same time we were fighing and enemy 7 times our size. Have you ever wondered y USA is always sacred to give is F-16 and other techs while it throws same tech at other states.

What we have achieved is through our hard work and we went through tough time and again we are going through tough time. Its only becoz Allah has protected us this far and will do so.

Even with the huge population and low GDP per capita, the relative issue within Pakistan was until quite recently. The country itself has the capacity to rectify the issue if its government was sincere enough. Pakistan has the farms, coal/gas, coastline and human resource to allow its people to live in better conditions than most of the world - and by huge margin. With numbers though...even if most Pakistanis were lower middle class and comfortable, the GDP per capita won't cross $10 000. However real wealth and paper wealth are two very different things.

BINGO !!! At last there is someone who knows what he is talking

thats why its done in USD and not Pak rupee

because USD will account for the weakening rupee.