The federal government has missed several of its economic targets despite improved overall performance compared with the previous year, according to preliminary documents.
Sources divulged on Sunday that the targeted GDP growth rate of 3.6% was not met, with actual growth recorded at 2.7%. Inflation remained limited to 5%, significantly lower than the set target of 12%.
Per capita income also fell short of expectations, remaining Rs34,794 below the set target. Annual per capita income was recorded at Rs509,174 against the target of Rs543,968. The survey shows that indirect tax revenue reached Rs8,393 billion, surpassing the target of Rs7,799 billion.
Sources reported that the agricultural sector underperformed, with growth recorded at just 0.6% against a target of 2%. The output of major crops declined by 13.5% compared to last year’s 4.5% drop. Cotton production fell by 30.7%, maize by 15.4%, and sugarcane by 3.9%. Paddy (rice) production declined by 1.4%, and wheat by 8.9%. The yield of minor crops slightly exceeded expectations, reaching 4.8% against a target of 4.3%, while increases were recorded in the production of vegetables, fruits, oilseeds, spices, and fodder.
The industrial sector achieved a growth rate of 4.8% against a target of 4.4%. Output increased in textiles, automobiles, garments, tobacco, and petroleum products. However, declines were noted in food, chemicals, iron, steel, electrical machinery, and furniture.
The services sector fell short of its 4.1% annual target, recording 2.9% growth. The construction sector outperformed, with growth at 6.6% against a target of 5.5%. Large-scale manufacturing contracted by 1.5% compared to its 3.5% target, whereas small-scale industries grew by 8.8%, exceeding the 8.2% target.
In the electricity, gas and water supply sector, growth soared to 28.9%, well above the 2.5% target. The health sector achieved 3.7% growth against a 3.2% target and the education sector grew by 4.4% compared with a 3.5% goal.
Private sector borrowing surged from Rs294 billion to Rs870 billion. Total revenue rose by 36.7% to Rs13,367 billion, and the tax-to-GDP ratio improved from 6% to 8%.
It is pertinent to note that Finance Minister Muhammad Aurangzeb would release the National Economic Survey for the current financial year tomorrow at 2:30 PM.
