Pakistan’s economic growth rate for the outgoing fiscal year has drastically dropped to 0.3% due to severe import restrictions implemented to avoid sovereign default. This has resulted in a crippled industrial sector and negative effects on the services sector.
The 0.3% growth rate is the lowest in the past four years, highlighting the mismanagement of the economy, which is inadequate to meet the needs of the country’s 250 million population.
Surprisingly, despite severe floods, the agricultural sector managed to post 1.6% growth, defying predictions of contraction due to crop damage. However, the industrial sector contracted by 2.94%, while the services sector, the largest sector in the economy, only experienced nominal growth of 0.9%.
The government has failed to meet its targets across all sectors, leading to widespread economic mismanagement, significant job losses, and a staggering inflation rate of 36.4%, the highest in 59 years.
The National Accounts Committee recently approved the provisional Gross Domestic Product (GDP) growth rate for the fiscal year 2022-23. The government’s mishandling of the economy, combined with devastating floods and soaring inflation, has caused significant damage to Pakistan’s economy.
Despite devaluing the rupee and increasing utility prices in hopes of securing an IMF deal, the government was unable to revive the IMF program or avert the impending economic disaster.