FINANCIAL CAPITAL
Macro – devaluation and POL prices created an
Economic
Overview
The Country’s economy had successfully
recovered from the global pandemic
and posted real GDP growth of 5.97
percent during the fiscal year 2022.
This high growth, could however, not
be sustained due to the wide-ranging
economic challenges like devastating
floods, shrinking fiscal space, exchange
rate pressure, mounting current account
deficit, inflation, etc.
The high international commodity prices,
increased interest rates, severe PKR
* Source: Pakistan Economic Survey
52
inflationary pressure which adversely
impacted the business environment during
the year 2022.
The economic growth is expected to
remain subdued in the near future and
this low economic growth in combination
with high inflation, escalated international
commodity prices and declining forex
reserves, would remain the key challenges
for the policy makers of the Country.
Agriculture Sector
Sustainable growth of the agriculture
sector remains vital for national food
security and rural development. Agriculture
is a major contributor of Country’s GDP.
During FY2022, the agriculture sector
recorded a remarkable growth of 4.40
percent and surpassed the target of 3.5
percent and last year’s growth of 3.48
percent. This growth is mainly driven by
high yields, attractive output prices and
supportive government policies, better
availability of certified seeds, pesticides,
and agriculture credit. The crops sector
outperformed and posted a growth of
6.58 percent during FY2022 against 5.96
percent last year. However, during second
half of the year the devastating floods,
unparalleled in the country’s history, ruined
the major part of the country with Sindh
and Baluchistan getting affected the most,
resulting in international institutions like
IMF predicting negative agriculture growth
in the year 2023