Economy of pakistan

GDP Growth rate = 4.24% as compare of 2.7 % of previous.

Agriculture sector accounts for 20.88 % of GDP, 43.5 % of employment..

o Growth rate of Agriculture= 2.9% (2.9% in prev year),
o Important crops contains 25.6 % of agri value and 64.5 % in overall crops
o Other crops contain 11.11 % agri value and contribute 2.3% of GDP
o Cotton ginning has 2.9% share in agriculture and .6% in GDP
o livestock share 56.3 % in agriculture, 11.8% to GDP, grew at 4.12%
o Forestry shares 2.0% in agriculture, growth rate 3.15%
o Fisheries share 2.1% in agriculture, growth rate 5.75%

Industry sector accounts for 20.30 % of GDP

o Industrial growth rate= 3.6 % (4.5% in last year),
o Four sub sectors: Mining & quarriying, manufacturing, Energy generation &
distribution, construction
o Manufacturing contributes 13.3% to GDP, employees 14.2% of labor
o manufacturing growth 5.5%

LSM (Large scale manufacturing), 10.68 % to GDP, 11 % of industry and

80 % of manufacturing

LSM growth rate : 2.5%

SME/SSM growth rate 8.2%, 1.7 % to GDP, 13 % to manufacturin

o Construction contributes 2.4 % to GDP, 12% share to Industry, employees 7.33%

of labor force, growth rate 7%
o Mining & quarrying 2.9% in GDP, 14.4% to Industry, growth rate 1.6%

o Power Generation and Distribution contributes 1.7% tp GDP, 8.2% in industry

and grew at 1.9%

Services sector accounts for 58.82% and growth rate 4.95 %

o Six sub sectors: Transport, Storage & Communication, Wholesale & Retail Trade,
Finance & Insurance, Housing, General Govt./Defense Services/Public
Administration, Private Services/Social Services
o Wholesale and retail trade grew at 3.38%
o Transport, Storage and Communication grew at 4.21%, employees 5.44 % of
labor force
o Housing Services grew at 4%
o Other Private services grew at 5.94%
o Finances and Insurance grew at 6.2% against 5.8 last year
o General Govt. services grew at 9.4% 9increase in pay & pension, low default rate)

Total investment to GDP improved at 15.1% as compared to 13.9% last year

o Fixed investment to GDP 13.52%
o Private investment 9.66% of GDP
o Public investment gre at 25.56%
o KSE 100 index witnessed highest in history
o Market capitalization $ 71.8 billion
o FDI inflows : grew at 10.2 % and reached at $ 2057.3 million
o Savings improved to 14.5% ------Rs. 4140 billion
o Remittances reached at $ 14969.66 million, growth of 16.06 %
o Gross fixed Capital Formation (GFCF) Rs. 3702 billion 10.3 % increase
o Commodity Producing Sector accounts for 41.2 % of GDP, growth rate 3.24%
o Declining oil prices led to shortfall in FBR collection by Rs. 205 billion

Fiscal Development
o Fiscal Deficit: 3.8 % (July-March 2014-15)
o Fiscal /Budget Deficit 5% of GDP (FY 2014-15
o Trade deficit: 0.7%
o Foreign Ex. reserves(of country): $ 17.739 billion, +ve change of 25%
o Total Revenue grew by 8.3% and reached Rs. 2682.6 billion
o Total tax collection Rs. 2063.2 billion, growth rate of 15.5 %
o FBR collected Rs. 1972.4 billion with a growth rate of 13% (GST on Petroleum
27%, 2% withholding tax on non filers)
o Total Expenditure Rs. 3731.6 billion against Rs. 3446.2 billion
o Current Expenditure grew by 10.1% and reached Rs. 3199.1 billion
o Dev expenditure and net lending grew by 6.9% and reached Rs. 594 bill
o PSDP grew by 27.1% and reached Rs. 499.4 billion
o Decline in current subsidies from Rs. 201.8 billion to Rs. 185.9 billion

Money and Credit

o SBP Discount Rate in monetary policy = 7%
o Broad money M2 witnessed increase of 7.33% and stood at Rs. 730.5 bill
o Net Foreign Assets (NFA) grew and stood at Rs. 220.1 billion
o NDA of banking sector grew by 5.45% and stood at Rs. 510.5 billion
o Govt. borrowing for budgetary support Rs. 601.1 billion against 240.2 pre
o Credit to Private sector grew by 4.3%
o Decline in NPL ratio to 12.3%
o Capital Adequacy ratio (CAR) of banking 17.4%

o Pak Rupee recorded a depreciation of 3.1 %

Capital Market:
o 27 % return for investors (31 % return in terms of US $)
o Gained 6870 points till 32131 level
o Auto sector top performer with market capital increase by 133 %
o Domestic Sukuk : Rs. 26 billion
o International Sukuk : $ 1 billion
o TFCs : Rs. 6 billion
o Mutual Fund Industry stood at Rs. 510.920 increase of 14%
o Portfolio of National Saving (NSS) Rs. 2938920.21 million constituting 25 %
share of overall domestic debt of GOP.

Education
o Literacy Rate 58 % as compared to 60 % last year
o LR in urban and rural areas 74% and 49 % respectively
o LR for men and women 81 % and 66% respectively
o Province wise LR for Punjab 61%, Sindh 56%, KPK 53%, Balochistan 43%
o Increase in enrollment by 2.4% reached 42.1 million

Health
o Expenditure on health 0.4 % of GDP Rs. 114.2 billion
o Calories intake per day per person increased from 2484 to 2490 0.24 % increase
o Medical Facility ratio: 1073 persons / doctor, 12447 persons / dentist, one hospital
bed for 1593 persons
o 1142 hospitals, 5499 dispensaries, 5438 BHU, 669 RHCs, 118041 beds in
hospitals.

o 175223 doctors, 15106 dentists, 90276 nurses in the country

Population & Employment

o Estimated population 191.71 milion, growth rate 1.92 %, 6th populous country
o Unemployment rate : 6%
o Total labor force 60.09 million, 56.52 are employeed
o 49 % of overseas Pakistanis are in middle east, 28.2% in Europe, 16 % in USA,
o Manpower export increased to 0.752 million
o Per Capita Income: $1512

Transport and Communication

o NHA highways, expressways, motorways of about 12313 km, portfolio of 72
projects costing Rs.1342 billion
o Pakistan Railway
o Revival of PIA, losses reduced from 44.3 bill to Rs. 32 billion
o Ports and shipping earned Rs 11.424 billion
o Karachi Port Trust 11.5 km long, 12 meters deep, turning basin of 600 meters
provides upto 75000 metric tons deadweight and handled 31.133 mill tons of
cargo
o Total volume of Port Qasim 15.189 mill tons
o Gawadar Port future centerpiece alongwith china

Energy
o Last year govt retired circular debt of Rs 480 billion, now again circular amounts
Rs. 250 billions including current payments
o Turkmanistan-Afghanistan, Pakistan-India (TAPI) pipeline ($10-12) will be
materialized till 2017 will provide 1.3 billion cubic feet gas to Pakistan
o Jamshoro Power project will be complete in 2018 with 1300 MW.

o Enhancement of distribution network and upgradation of 284 grid stations with

investment of $ 167.2 miilion
o Dasu Hydro Power I on Indus River through IDA credit of $ 588.4 million will
add 2160 MW.
o Different MoU signed with china on energy projects of coal, wind, sola, and
hydro project by 2017 adding 10400 MW
o Neelum Jehlum Hydropower to be completed in 2016

Telecom: Total Subscribers 134 million

Allocation of 4.5% of GDP to social safety Nets through BISP, PPAF, RSPNs, Pakistan
Bait-ul-Mal

Foreign Exchange reserves(of SBP): $ 12.550 billion as on 8th May

Public Debt 61.8% of GDP Rs. 16936 billion, increase of 940 billion from prev

Public Debt servicing Rs. 1139 billion 44.5 % of total revenues

EDL stock $ 62.6 billion out of which external public debt $ 49.1 billion

Three main drivers of economic growth are consumption, investment and export

Inflation: 4.8 %, Food and Non Food Inflation 3.6% and 5.7 % respectively

Import Volume: $34.086 billion decline of 1.61%

Export Volume: $20.176 billion - 3% decline

External Account posted a surplus of $2.12 billion

Current Account deficit: $ 1.364 billion (.06% of GDP), 53.5 % less than prev

Tax to GDP ratio= 8.7% (min average in world is 15%)

If Poverty line= $2 per day then 60.19% Population fall below poverty line in Pakistan.
In china 29.7%, India 68.7% and Bangladesh 76.5% of population is below poverty line.

Financial Account balance: $2.836 billion

Sale of EURO Bonds: $ 2 billion

Issuance of Sukuk bonds in international market: $ 1 billion

Budget 2015-16

Total Outlay : Rs.4451.3 billion 3.5 % higher than previous,

Estimated gross revenue receipts are Rs.4,313 billion , 9.1 % higher

o Estimated net revenue receipts Rs 2,463.4 billion with 3.6 % increase,
o Est. provincial share in federal taxes Rs 1,849.4 billion 17.4 % higher,
o Estimated net capital receipts Rs 606.3 billion with decline of 12.2 %,
o Estimated external receipts Rs 751.5 billion 12.1 % higher.

Estimated expenditure Rs 4,089 billion, 4.8 % higher

o Current expenditure is Rs 3,128 billion (78.2%)

Defense Budget Rs.780 Billion, 11 % higher

o Development Budget is Rs 700 billion, 29 % higher

Size of PSDP Rs 1,513.7 billion

Target Budget deficit 4.3 % - that is Rs. 1625 billion

Taxation
o Capital gain Tax 15 % and 12.5 % for securities held for 1 year and 2 years
respectively and 7.5 % for holding securities for 2-4 years
o For commission agents/non filers increased to 3 % against 2 %
o Adjustable Advance income tax on banking instruments 0.3 % (Cheques)
o Income tax for banking companies income @ 35%
o For dividend income 12.5%, for non filers 17.5%, for mutual funds 10 %
o Adjustable adnace income tax @ 0.1% for each transaction at PMEX

o Adjustable advance income tax of 7.5 % at electricity bills amounting to Rs.

75000/o A tax @ 10 % for not distributing dividend
o An additional withholding tax of 10 % for renting machinery, equipment,
scientific instruments alongwith already final tax of 15 %
o Additional one time tax of 3 % on banking companies and 4 % for others having
income above Rs. 500 million for rehabilitation of TDPs
o Proposed income tax of 32 % for companies instead of 35 % earlier in lieu of 1%
reduction strategy annually.
o Tax credit for enlistment is increased to 20 % against 15% earlier
o Tax credit for new investment limit is proposed to increase to 1.5 million
against Rs. 1 million earlier
o Reduction in Withholding Tax On Token Tax by 20-25% for tax filers
o Reduction in Withholding Tax On Transfer of Vehicles by 75 % for tax filers
and one third for non filers
o Reduced income tax of 25% for small company and propsed limit enhancement to
Rs. 50 million
o Reduction in income tax to 2% for salaried persons with income 4 5 lac, and 7%
for non salaried persons having income between 4-5 Lac
o FED on cigarettes increased from 58 % to 63%, 0.75% on each filter rod
o Rates of further tax enhanced from 1 % to 2%
o Sales tax on Mobile phones increased from 150, 250 and 500 rupees to 300, 500
& 1000 rupees respectively
o FED on aerated water increased from 9% to 12 %

Reduction in maximum tariff slab from 25 % to 20% and reduction in number of slabs
from 6 to 5

Powers of FBR to issue exemptions are withdrawn and subjected to circulars through
parliament

Construction
o Markup on housing credit be deductable to income upto 50 % of taxable income
or Rs. 1 million
o Sales tax on bricks and crushed stones is exempted for 3 years.
o Custom duty on import of construction machinery is reduced from 30% to 20%
o Tax/mport duty exemption for solar panels

Agriculture
o Income Tax holiday of 3 years for agri supply chain if set upto 2016
o Tax exemption for halal food manufacturers for four years if set upto 2016
o Reduction of sales tax from 17 to 7%, withholding tax to 0%, and import duty to 2
% o n import or local supply of agril machinery
o Income Tax reduction for rice mills to minimum level
o Interest free loansof Rs. 1.1 million for solar tubewells against deposit of Rs.
100000

Estimated bank borrowing Rs 282.9 billion

NFC Composition: Punjab 51.74%, Sindh 24.55%, KPK 14.62 %, Baluchistan 9.09 %

Expenditure on General Public Services is 70.3 % of current expenditure

Income tax holiday for all manufacturing units set up in KPK upto 2018

7.5% adhoc relief allowance on running basic pay, merging of previous adhoc relief
allowances to basic pay, medical allowance increased to 25 %. 7.5% increase in pension

Minimum wage rate.Rs 13000