The Governing Council of the Pakistan Bureau of Statistics (PBS) has approved change of National Accounts base year from 1999-2000 to 2005-06, leading to an increase in the size of 2005-06 economy by 7.8 percent or Rs 552 billion. Advisor to Prime Minister on Finance, Dr Shahid Amjad Chaudhry who chaired the meeting directed PBS to prepare and release the estimates of National Accounts for 2012-13 on this new base.
The meeting attended by the members of the Governing Council, as well as the members of the technical committee on rebasing of national accounts met with agenda items for approval of the budget proposals for 2013-14, the work plan for the next financial year and the rebasing of the national accounts from the year 1999-2000 to 2005-06. The rebasing of national accounts was taken on priority and a presentation was made by the Member (National Account). A senior official of the PBS said that it is periodical exercise aimed at giving latest and accurate picture of the economy and would not have any positive or negative impact.
He said the Governing Council was informed about the adoption of the latest concepts, ie, double deflation, Financial Intermediation Services Indirectly Measured (FISIM) and basic prices in national accounts of Pakistan. The availability of new data sources through census, surveys and studies, updated prices and industry bases were also highlighted. National accounts have been rebased on the surveys undertaken during the period. The smaller components were captured through studies.
It was submitted before the council that with the adoption of the latest system, and as a result of the latest economic classifications (ISIC, CPC, COICOP, COFOG, etc), some shifting has taken place among the sectors and sub sectors. Double counting, omissions and errors have been rectified. With the introduction of FISIM in the Banking and insurance sector, the contribution of the sector has been measured based on the services provided. In the compilation of national accounts detailed results of housing and population, agriculture and livestock censuses have been utilised. The comparative estimates of the bases 1999-2000 and 2005-06 for the benchmark year 2005-06 were presented to the Governing Council and are given below.
The Governing Council accorded approval to the change of base of national accounts 2005-06. The chair also directed Pakistan Bureau of Statistics to prepare and release the estimates of National Accounts for 2012-13 on this new base. The meeting then discussed the budget proposals for 2013-14 and approved the same for recommendation to the Finance Division. The chair also approved the initial estimates for holding of Population Census and directed to the same to be send to Finance Division for provisioning in the next budget.
In the context of alternative presentations of national accounts it was decided to set-up a sub-committee under Dr Asad Zaman with Professor Muhammad Nizamuddin, Dr Zeba A Sattar and Dr G M Arif, as members to study the matter. Another sub-committee on the state of preparation for population census was set-up under Dr Mehtab S. Karim with Dr Zeba A Sattar, Dr Asad Zaman and Professor Nizamuddin as members. Both these committees would make their presentation in the next meeting of the Governing Council of PBS. The chair also decided that in future, all meetings of the Governing Council of the PBS would be held on the last Monday of the every quarter. The meeting ended with a vote of thanks to the chair.
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Change of base (1999-2000 to 2005-06) effects (Rs Bill.)
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Sectors Base Base
2005-06 1999-2000 Difference
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Year 2005-06 at prices
of 2005-06
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1 2 3 4
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A. Agriculture 1775 1457 318
1. Crops 766 633 133
i. Important/major crops 449 464 -
ii. Minor crops 257 168 -
iii. Cotton ginning/others 60 - -
2. Livestock 931 766 165
3. Forestry 35 28 6
4. Fishing 43 30 13
B. Industrial sector (1-4) 1616 1924 -308
1. Mining & Quarrying 254 220 35
2. Manufacturing 1065 1371 -
i. Large Scale Manufacturing 903 1003 -100
ii Small Scale Manufacturing 89 246 -157
iii Slaughtering 73 122 -49
3. Electricity Gen. & Distribution and Gas dist 110 153 -43
4. Construction 186 180 6
C. Services Sector (1-6) 4324 3778 547
1. Wholesale and Retail Trade 1523 1262 261
2. Transport, Storage & Communication 960 909 51
3. Finance and Insurance 283 364 -81
4. Housing Services (Owner. Of dwellings 505 185 320
5. General Government Services 426 405 21
6. Other Private Services 629 653 -25
GDP (total of GVA) 7716 7159 557
Change (%) 7.8
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