ISLAMABAD - The Ministry of Finance has said that the perseverance of people made Pakistan the World’s 24th largest economy in terms of purchasing power parity and 44th in terms of nominal GDP.

“The economic policies of the successive governments have promoted industry, agriculture and services sectors,” said the ministry of finance in its special report, ‘75 Years Economic Journey of Pakistan’. The country’s economy has shown remarkably improvement since independence. The country’s nominal GDP rose from $3 billion to $383 billion from 1950 to 2022. Meanwhile, GDP growth has gone up from 1.8 percent in 1950 to 5.97 percent in 2022. Per Capita Income rose from $86 to $1,798 from 1950-2022. Exports have increased from $163.9 million in 1950 to $32.5 billion from 1950-2022. The country’s tax revenues has also enhanced from Rs0.31 billion to Rs6,126.1 billion from 1950-2022.

“Enhanced economic governance has paved the way for a prosperous and strong Pakistan. Given the current economic fundamentals and sound economic policies being adopted by the present government, Pakistan is all set to become an economic power house of the world,” said Finance Minister Miftah Ismail. The report highlighted that incumbent government aimed to increase growth to 6-7 percent in medium term. The government would improve tourism and information technology. It would also improve investment climate and attract domestic and foreign investment. The government would establish Special Economic Zones (SEZs) focusing on export promotion, import substitution, and employment generation. Proactive measures would introduce a paperless working environment in the offices.

Agriculture

Agriculture sector has recorded growth in last 75 years. Wheat production has increased from 3.354 million tonnes in 1948 to 26.394 million tonnes in 2022. Rice production has gone up from 0.693 million tonnes in 1948 to 9.323 million tonnes in 2022. Maize production has enhanced from 0.359 million tonnes to 10.635 million tonnes and sugarcane production from 5.529 million tonnes to 88.651 million tonnes. Cotton production has surged to 8.329 million bales from 1.156 million bales.

Water availability for the agriculture sector has gone up from 63.9 MAF in 1965-66 to 131.0 MAF in 2021-22. Agriculture credit disbursement has enhanced from Rs4.3 million in 1952-53 to Rs1,219 million in 2022. Fertilizer offtake has increased from 31.4 thousand tonnes in 1960-61 to 5,001 thousand tonnes in 2021-22.

Industry

Early 1950s – manufacturing consists 80 percent of the industry whereas construction consists 16 percent, mining and quarrying 2 percent and electricity generation and distribution and gas distribution 2 percent. However, the ratio has changed now. In 2022 – the share of manufacturing is 65 percent, the share of construction, electricity generation, and distribution and gas distribution reached 13 percent and the share of mining and quarrying stood at 9 percent.

Fiscal, Monetary and External Sectors

In fiscal sector, the size of the Federal PSDP (Public Sector Development Programme) has increased from Rs45.4 billion in 1990 to Rs900 billion in 2022. Share of direct taxes increased from 22 percent in the 1960s to 39 percent in the 2020s. On the other hand, share of indirect taxes has reduced from 78 percent in the 1960s to 61 percent in the 2020s. In monetary sector, credit to the private sector has increased. Share of manufacturing increased from 16 percent to 63 percent.

In external sector, Foreign Direct Investment (FDI) has increased from $1.2 million in FY 1950 to $1,867.8 million in FY 2022. Meanwhile, foreign remittances increased from $0.14 billion in FY 1973 to $31.2 billion in FY 2022. Exports increased from $162 million in FY 1950 to $31.8 billion in FY 2022. Similarly, imports increased from $276 million in FY 1950 to $80.2 billion in FY 2022.

Energy

The country electricity generation has also increased from 41 GWh in FY 1949 to 123,248 GWh in FY 2022. Hydel electricity generation has enhanced from 41 GWh to 38,990 GWh. Thermal from 3,789 GWh in FY 1971 to 74,862 GWh and green energy from 802 GWh in FY 2015 to 3,709 GWh in FY 2022.

On the other, electricity consumption has also gone up for the household from 635 GWh in FY 2015 to 55,722 GWh in FY 2022. Electricity consumption for agriculture sector has increased from 997 GWh in FY 1972 to 10,238 GWh in FY 2022 and for the industrial sector, it has enhanced from 2,855 GWh in FY 1972 to 29,954 GWh in FY 2022.

Education

Pakistan literacy rate has improved from 16.4 percent in 1951 to 62.8 percent in 2020-21. Literacy rate for both male and females has improved. Male literacy has increased from 19.8 percent in 1951 to 73.4 percent in 2020-21 and female literacy from 12.6 percent in 1951 to 51.9 percent in 2020-21.

Primary schools increased from 770 thousand in 1947-48 to 25,676 thousand in 2020-21. Technical and vocational institutions increased from 4 thousand in 1947-48 to 500 thousand in 2020-21. Degree colleges increased from 4,368 in 1947-48 to 758 thousand in 2020-21. Universities increased from 644 in 1947-48 to 1,964 thousand in 2020-21.

Health

Number of public hospitals has increased from 292 in 1947 to 1,276 in 2021. Infant mortality of 150-180 (per thousand) in 1947 decreased to 58.9 (per thousand) in 2021. Health expenditures increased from Rs1 million in 1947-48 to Rs657,185 million in 2020-21. Life expectancy increased from 50-year in 1970 to 67.4-year by 2020.

Transport and Communication

Telephone and mobile users increased from 15,200 in 1947 to 194.2 million in 2021. Registered vehicles vs road lengths increased from 31,892 in 1947 to 32.4 million in 2021.

Population and

Labour-force

Population size increased from 65.3 million in 1972 to 207.7 million in 2017. Population is estimated at 227.0 million in FY 2022. Employed labour force increased from 16.24 million in 1964 to 67.25 million in 2020-21. Poverty headcounts decreased from 40.24 percent in 1969 to 21.9 percent in 2018-19.