'Understated GDP'

Business Recorder op-ed writer Ali Khizar in his latest contribution to the newspaper titled "Understated GDP" has effectively highlighted the two key facts: GDP is significantly understated in Pakistan; in India, however, the GDP is overstated.

I would like to add to his argument by stating the fact that the rise in GDP does not necessarily reflect the actual rise in the standard of living; the rise in GDP often understates the rise in standard of living. Bill Gates had once famously said that GDP underestimates economic growth. There is, therefore, always a need for carefully measuring growth and improvement in people's lives.