Despite high international oil prices and devastating earthquake 2005, the economy has grown on an annual average of 7.5 percent during the last four years 2003-06. This year, 2006-07 by achieving growth rate of over 7 percent, the GNP would reach about $150 billion and per capita income around $950.
The growth is broad-based agriculture sector particularly on account of wheat, pulses and sugarcane production and livestock development has achieved a high growth rate of 5 percent in 2006-07, large-scale manufacturing has grown in double digits and growth in services sector has also been robust.
Total investment has increased tremendously in recent years. It reached all-time record level of Rs 1,900 billion in 2006-07 and National Savings at Rs 1,500 billion.
Total foreign investment is rising every year. This year it is expected to reach to $6 billion - highest in South Asia. The workers' remittances an important component of national savings is increasing fast. It will be around $5.5 billion by end June 2007. Tight monetary policy is pursued by the State Bank of Pakistan to control rising inflationary pressures.
The fiscal accounts have considerably improved in recent years. Revenues are buoyant, expenditures are rationalised. Revenue deficit is eliminated and public debt and fiscal deficit has been brought to a sustainable level. It is expected that CBR collection would exceed the target of Rs 835 billion in 2006-07.
Although the trade deficit is on the higher side, rising FDI and workers' remittances over $6 billion and $5.5 billion respectively would keep the external account position comfortable. Foreign exchange reserves currently stand around $14 billion expected to reach around $14.4 billion by end June representing about seven months of imports an improvement of $1.1 billion over the last year level.
The public expenditure on social sectors has increased from Rs 103 billion in 2001-02 to Rs 228 billion in 2005-06 reflecting an increase of 22 percent per annum.
The pro-poor expenditure has also increased sharply by 27 percent annually from Rs 180 billion 2001-2002 to Rs 464 billion in 2005-06. In terms of GDP, the expenditure during this period has increased from 4 percent to 6 percent.
Poverty has declined significantly from 34 percent in 2001 to 24 percent in 2005. Situation should further improve with the good agriculture growth this year. Unemployment rate has declined from historically high level of 8.3 percent in 2001-02 to 6.2 percent in 2005-06.
Knowledge based economy, technology driven development, innovation, value addition, and establishment of quality/accredited laboratories and achievement of MDGs and long-term objectives of the Vision 2030.
For this purpose, Planning Commission is striving hard for just and fair treatment to all and carries everybody along in development of every inch of Pakistan on the basis of equality. Smooth working, growth and equitable development are underlying principles of our development process.
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