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ISLAMABAD: Pakistan’s real Gross Domestic Product (GDP) (inflation adjusted) during fiscal year 2007-08 at constant factor cost of FY 1999-2000, grew by 5.78 per cent to Rs5.49 trillion against Rs5.19 trillion recorded during the last fiscal, the State Bank reported.

This inflation-adjusted measure reflects the value of all goods and services produced in the country in 2007-08, expressed in base-year prices of 1999-2000. It referred to as “constant-price”, “inflation-corrected” GDP.

The sector-wise provisional data released by SBP says that though, as a whole, economy grew a little less than six per cent, yet the most worrisome flashback of the economy during 2007-08 was the declining agricultural growth.

Agriculture: The sector grew by only 1.48 per cent (to Rs1.15 trillion) against 3.65 per cent during last fiscal. The decline in agriculture may be blamed for lower than expected growth in crops production. All the major and minor crops showed a negative 1.1 per cent growth. Major crops production declined by 2.96 per cent. In monetary terms it bogs down to Rs388.90 billion against Rs400.79 billion last fiscal. Minor crops production however grew by 4.89 per cent to Rs130.96 billion against Rs124.86 billion in last fiscal. Livestock grew by 3.78 per cent to Rs599 billion, last year its volume was Rs577 billion. Fishing sector also grew by 11 per cent to Rs18.43 billion while forestry sector declined to Rs11.35 billion from Rs12.4 billion with a decrease of 8.46 per cent.

Industrial sector: The industrial sector during FY 2007-08 grew by 4.63 per cent to Rs1.42 trillion against Rs1.36 trillion last fiscal. The manufacturing, which accounts for 18.2 per cent of GDP, registered 5.39 per cent growth and stood at Rs1.04 trillion

Large Scale Manufacturing (LSM) grew weaker than expected at 4.84 per cent to Rs728.40 billion against Rs694.77 billion last fiscal. Small scale manufacturing during this fiscal increased by 7.51 per cent to Rs240 billion, up from Rs223.35 billion last fiscal.

Mining and quarrying registered growth of 4.93 per cent and stood at Rs138.77 billion during the last fiscal against Rs132.25 billion in FY 2006-07. Construction continued its strong showing, partly helped by activity in the private housing market, spending on physical infrastructure, and reconstruction activities in the earthquake-affected areas. The construction sector grew by 15.16 per cent to Rs146.96 billion in 2007-08 against last year’s Rs127.62 billion.

Electricity and gas distribution showed a negative growth of 14.75 per cent and declined to Rs93.86 billion in FY 2007-08 from Rs110.10 billion last fiscal. Services sector: In sharp contrast, the services sector relating to finance and insurance, retail and wholesale trade, transport and communication, etc., posted an impressive growth of 8.16 per cent in 2007-2008 and its volume grew to Rs2.92 trillion.

In services sector, wholesale and retail trade grew by 6.36 percent to Rs939.75 billion, transport storage and communication by 4.42 per cent to Rs551.81 billion, finance and insurance by 17 per cent to Rs356.81 billion, ownership of dwelling by 3.5 per cent to Rs145.52 billion, public administration and defence by 10.87 per cent to Rs358.12 billion and community, social and public services grew by 9.37 per cent to Rs571.44 billion.