Real GDP grew to Rs 5.492 trillion during 2007-08
KARACHI (July 13 2008): Real Gross Domestic Product (GDP) volume reached new peak level of Rs 5.492 trillion during 2007-08 from Rs 5.192 trillion of previous year, up by Rs 300.383 billion, due to the robust performance of the services sector. The State Bank of Pakistan has released sector-wise data of real GDP growth, which showed that the country's economy grew by 5.78 percent during fiscal year 2007-08.
However, the increase in the GDP growth was about 2 percent less than the fiscal year 2007, as then it grew by about 6.8 percent, or Rs 332 billion. However, growth during 2007-08 was also lower than the annual growth target of Rs 374 billion, or 7.2 percent, fixed by the policy markers.
The services sector played a vital role in achieving 5.78 percent GDP growth, as growth in services sector was higher than commodity producing sector. Services sector presented a healthy growth of 8.6 percent during fiscal year 2008. Its volume increased to Rs 2.923 trillion by the end of June, 2008 as compared to Rs 2.702 trillion in fiscal year 2007, showing an increase of Rs 220.591 billion.
The growth of Commodity Producing Sector, comprising agriculture and industry, stood at 3.20 percent in fiscal year 2008. The volume of commodity producing sector reached Rs 2.569 trillion during 2008 over Rs 2.348 trillion of 2007, depicting a rise of Rs 79.747 billion in 2008.
"Internal and external shock, uncertainty on political front, short supply and poor law and order situation has wickedly hurt the GDP growth in last fiscal year", analysts said.
They said that energy shortage in the country, soaring oil prices, political battle and rising raw material prices hampered the economic growth during 2008. The manufacturing sector also presented feeble growth on the back of these internal and external shocks, besides the tight monetary policy. In commodity producing sector, the agricultural volume mounted to Rs 1.148 trillion with an upsurge of 1.48 percent, while the industry grew by 4.6 percent to Rs 1.420 trillion by the end of fiscal year 2008.
Business Recorder [Pakistan's First Financial Daily]
