Pakistan's economic growth slumps to 1% in second quarter

ISLAMABAD, Mar 29: In the second quarter of the current fiscal year, the uncertain performance of industries and services sector had a negative impact on economic growth, pushing Pakistan's economic growth rate down to just one percent.

According to media reports, just two days before leaving office, former Finance Minister Dr. Shamsad had claimed that due to strong manufacturing conditions, economic growth would reach 3 percent in the second quarter of this fiscal year. The Special Investment Facilitation Council, due to its particular attention, is showing consistent growth only in the agriculture sector.

According to the National Accounts Committee, the rate of economic growth remained only one percent from October to December. Industrial sector growth recorded at 0.84 percent, services sector at 0.01 percent, and agricultural sector growth at 5 percent were noted.

According to the IMF Secretariat, Green Corporate Livestock Innovations Ltd. has entered into a contract with a Brazilian company for the import of nine generations of livestock. This initiative will improve the livestock sector. In this regard, the first batch of 173 livestock arrived at Sialkot International Airport on Thursday.

In the 108th meeting of the NEC, the growth rate for the first quarter was revised upwards from 2.1 to 2.5 percent. Pakistan's population is growing at an annual rate of 2.6 percent. A lower growth rate means an increase in poverty, unemployment, and food scarcity issues in the country.

The government has set a growth target of 3.5 percent for the current fiscal year. However, due to the current financial crisis, it is expected that the growth rate will remain at 2 percent. The new finance minister had said earlier this week that despite continuing the IMF program, Pakistan can achieve economic growth by focusing on the agriculture sector.

However, he said that doing business at an interest rate of 22 percent has become impossible. The State Bank has maintained the interest rate at 22 percent to control inflation. Due to better performance in cotton, ginning, and livestock in the second quarter, the agriculture sector has supported the country's economy with a 5 percent growth rate. An increase of 8.12 percent was observed in the production of major crops. Wheat production increased by 6.7 percent.

However, sugarcane production remained negative, witnessing a decrease of 10.7 percent. There was a slight decrease of 0.34 percent in the production of other crops. A significant increase was observed in cotton ginning and its several components compared to last year, recording an increase of 53.6 percent. This year, cotton production has improved significantly.

The mining and quarrying industry grew by 4.17 percent. During this period, there was a decrease of 5 percent in gas production, 40.13 percent in marble, and 20 percent in limestone. In the second quarter of the current fiscal year, there was a nominal increase of 0.5 percent in large-scale manufacturing production.

Public administration and insurance industry also remained 16.2 percent negative. The education sector saw a growth rate of around one percent. The human health and social work industry continued to decline, witnessing a negative growth of 2.5 percent. Private services grew at a rate of 3.63 percent.