ECONOMIC SURVAY OF

PAKISTAN
2018-19 TO 2019-20
CONTENTS

 GROWTH AND INVESTMENT

 AGICULTURAL
 MANUFACTURING AND MINING
 FISCAL DEVELOPMENT
 MONEY AND CREDIT
 CAPITAL MARKET & CORPORATE SECTOR
 INFLATION
 TRADE AND PAYMENT
 PUBLIC DEBT
 EDUCATION
 HEALTH AND NUTRATION
 POPULATION, LABOUR, FORCE AND EMPLOYMENT
 TRANSPORT AND COMUNICATION
 ENERGY
 SOCIAL PROTECTION
 CLIMATE CHANGE
GROWTH AND INVESTMENT
 INTRODUCTION:
Economic growth is one of the most important issues for both develop and developing countries
economic growth is the increase in the market value and investment is the strategy focused on
capital appreciation.
In growth and investment we are discussing about agricultural, industrial , investment and
many more sectors.

COMPARISION BETWEEN 2019 & 2020:

1. Provisional GDP growth rate in 2019 is 3.29% and it’s decline by -0.38% in 2020.
2. The agriculture sector estimated growth at 0.85% in 2019 at this sector mainly increase
2.67% in 2020
 3. The industrial sector estimated 1.40% in 2019 and it is estimated -2.64% in
2020.
4. Transport sector registered growth 3.34% in 2019 and -7.13% in 2020.
5. Public investment shown improvement at 3.8% in 2020 as compared the last
year it stand at 3.7%.
AGRICULTURE

 INTRODUCTION:
High performing agriculture is a key to economic growth and poverty
alleviation. Agriculture plays a big role in economic growth of a country.
COMPARISION BETWEEN 2019 & 2020:
1. The agriculture grew by 0.85% in 2019 and in 2020 this sector recorded strong
growth of 2.67% considerably.
2. The crop sector witnessed negative growth in 2019 and in 2020 the crop
sector experience remarkable growth of 2.98%.
3. Fishing sector grew by 6.47% in 2019 and it is decline by 2.29% in 2020.
4. In 2019 livestock sector recorded growth of 4.0% against the target of 3.8%
and in FY-2020 livestock estimated growth of 2.58%.
5. Cotton and other crops estimated 12.74% growth in 2019 and in 2020 it is
increased 2.20%.
MANUFACTURING AND MINING
 INTRODUCTION:
Manufacturing and mining sector are considered to be the main source of
economic growth having forward and backward linkages with other sector of
economy and mining is done to liberate minerals from the crust of the earth.
COMPARISION BETWEEN 2019 & 2020:
1. The manufacturing and mining sector decline by 1.96% in2019 and in 2020 it is
declined by -7.78 in large scale manufacturing.
2. PSDP experienced negative growth in LSM as compared to last year in 2019 and
it is also experience decline growth of 5.4% in 2020 due to COVID-19.
3. Automobile prices witnessed multiple upward revision due to PKR depreciated in
2019 and it remain same in 2020.
4. Electronic record highest growth of 23.70% in 2019 in industry, wood, rubber,
engine leather etc. and in FY-2020 increases electricity prices for domestic steel
produces margins.
5. Chromite, Magnetics rock, salt, crude oil showed positive growth in 2019 and
in 2020 minerals showed negative growth.
FISCAL DEVELOPMENT
 INTRODUCTION:
Fiscal policy is an instrument of economic development that has major impact on
income distribution and poverty through taxes borrowing and public expenditures. It
covers both revenue and expenditure measures.
COMPARISION BETWEEN 2019 & 2020:
1. Fiscal deficit despite increased 5% GDP in first nine months of 2019 and in FY-
2020 it has continuously reduced to 4%GDP against last year GDP.
2. Total expenditure increased GDP to 14.6% in 2019 and as compared to last year
the total expenditure increased by 15.8% in pandemic year 2020.
3. FBR tax collection remained at RS 2976.0 billion in last year 2019 and it’s grown
by RS 3300.6 billion during July-April 2020.
4. The federal and provincial PSDP decreased by 14.5% in last year 2019 and it
witnessed a significant rise by 24.9% in PSDP expenditure in 2020.
MONEY AND CREDIT
 INTRODUCTION:
The development of financial market and institution is a critical part of the economic
growth. The banking sector of Pakistan was nationalized and public sector financial
institutions were expended in 1970. the financial sector of Pakistan remarkable
improvements in 1990.
COMPARISION BETWEEN 2019 & 2020:
SBP increased the policy rate by 100bps 13.25% in the beginning of the fy2020. due to
covid-19 if the policy rate by cumulative 525 to 8% in the form consecutive decision b/w
march last year policy rate stand at 12.25 effective from 21 may 2019.
1. Broad money has increased to 1481.3 billions during 1 july – 24 april FY2020 Showing a
sharp expansion in the NFA of the banking system while reached to 893.7 billion last
year Rs 882.4 billion.
2. Credit to private sector contained to Rs 304.7 billion during 1 july – 24 april FY2020 as
compared to the expansion of Rs 581 billion in the corresponding period due to slow
down in economic activities last year flow of credit to private sector recorded 580
billion
3. Government has borrowed RS 1023.91 billion during 1 july – 24 april 2020 against the
borrowing RS 990.87 billion last year.
CAPITAL MARKET AND CORPORATE
SECTOR
 INTRODUCTION:
capital market is a market where buyer and seller engaged in trade of financial
securities like bond, stock etc.
• Primary market (also called new issue market)
• Secondary market
PAKISTAN STOCK EXCHANGE:
1. The index kicked off with 33.901 prints on 1st july and reached the year’s peak of
43218.67 points on January 13 2020.
2. After the covid-19 out break capital began flowing out of the Pakistan stock market
and the index plunged to 27228.8 points and market capitalization closed at RS
5380.17 billion on 25 march.
3. KSE-100 index increased 25.25% since march .
4. Market capitalization increased 18.4 percent since
march.
INFLATION

 INTRODUCTION:
Inflation is defined as a sustained increase in the price level on a fall in the value
of money when the level of currency of country exceeds the level of production ,
inflation occur value of money depreciate with the occuernce of inflation
EFFECT OF INFLATION;
• Increase in money supply.
• Increase in export
• Decrease in purchasing power
• Increase in public expenditure
• Decrease in aggregate supply of good
INFLATIONARY RATE:
The inflationary rate started easing out due to government policy after January and for
the period july-april FY2020 rewarded 11.2 percent against 6.5% during the same period
of last year
HOW TO CONTROL ONFLATION
Monetary measure
• Reduction in unnecessary expenditure
• Increase in taxed
• Increase in saving
• Increase production
• Price control
Fiscal measure
• credit control
• Issue of new currency
TRADE AND PAYMENT

 INTRODUCTION:
The act or process of buying, selling on commodities within country or between
countries is called trades.

Trade sector include:

IMPORT: good and services that were produce abroad .
EXPORT: good and services produce locally and sold abroad.
 IMPORT:
• Machines , petroleum , chemicals vehicles ,
edible oil , wheat .tea , fertilizers, plastic,
paper board , iron ore stell .
• Import decreases 16.9% as compared to last
year
 EXPORTS:
• rice , cotton, sports goods, electrical
appliance, cook wears, leather bags,
chemicals and cement, mangoes and
vegitables
• export decline 2.4
 During july-april 2020 remittance increase to $18.8 billion as compared to
$17.8 billion during same period last year with growth of 5.5
 Current account deficit reduced by 73.1 percent to US $28 billion (1.1 percent
of G.D.P ) against US$ 10.3 billion last year (3.7% of G.D.P).
 Forgin exchange increase 3.6%
PUBLIC DEBT

 INTRODUCTION:
It is considered as one of the most important source of income for a government
if the revenue collected through taxes isn’t adequate to meet government
expenditure. Public means government and Debt means borrowing. It is the
process to achieve cost and risk goals and achieve other goals such as developing
and maintaining.
PUBLIC DEBT:
• The public debt is the amount of money that a government owes to outside
debtors.
• Public debt allows governments to raise funds to grow their economy or pay
for services.
• It is often expressed as a ratio of GD.
• It is an important source of resources for a government to finance public
spending and fill holes in the budget.
• It can be raised both externally and internally.
Pakistan’s Public Debt has two main components:
DOMESTIC DEBT:
Domestic Debt also called Internal Debt.
It is a form of the creation of money in which the government manages to finance
not by creating but by borrowing it.
The money generated is in the form of securities borrowed from the Central Bank.
EXTERNAL DEBT:
It is the section of a country’s debt that is borrowed from foreign lenders
including commercial banks, governments or international financing institutions.
These loans will be paid out in the currency in which the loan has made including
interest.
The borrowing country may trade and export goods to the lending country. If a
country cannot repay its external debt, it faces a debt crisis. If a country effuses
to pay its external debt the sovereign default is said to be in.

GRAPH:
 According to the graph, domestic debt and external debt has been increasing in
2020 as compared to 2019.
BIOGRAPHY:
Once Pakistan People Party came to power in 2008 Pak’s debt amounted to RS
6.435 billion and in 2013 Pak’s dent became RS 15.096 billion.
In 2013-2018, Pak’s external debt rose from US$52.4 billion to US $95.3 billion.
COMPARISION BETWEEN 2019 & 2020:
 Total Public debt amounted to RS 35.207 billion at the end of March 2020
compared to RS 32.708 billi0on at the end of June 2019.
GRAPH:
EDUCATION

 INTRODUCTION:
Education plays a vital role in capacity building and human resources,
undoubtedly contributing to higher economic growth.
According to the ‘Human Development Survey” 2019, Pak is ranked 152 of 189
countries in the Human Development Index (HDI).
Pak’s literacy rate is 58% and the dropout rate for primary schools is 22.7%.

PAKISTAN’s LITERACY RATE:

The Literacy rate has subsequently fallen by 60% to 58% as leaked by Pakistan
Economic survey.
• Punjab leads with 64%, Sindh with 57%, KPK with 55% and Baluchistan with 40%.
• Islamabad and Karachi have a 75%.

GRAPH:
PUBLIC EXPENDITURE ON EDUCATION:
In Fiscal Year 2019-2020, the government has allocated RS 29.647 billion to HEC
for the implementation of 138 developments projects (128 ongoing & 10 new
projects).
PRIMARY ENROLLMENT RATES:
There are two types of enrollment rate:
1. Gross Enrollment Rates
2. Net Enrollment Rates
 GROSS ENROLLMENT RATES:
Gross enrollment rates at primary level, excluding training for the age group 6-
10 years wre 87% in 2018-2019.
• In 2018-2019, Punjab reported an increase from 935 to 95%.
• Sindh was stable at 78%.
• KPK increased 88% to 89%.
• Baluchistan fell from 59% to 57%.
GRAPH:

NET ENROLLMENT RATES:

 In 2018-2019, Punjab increased from 71% to 73%.
 Sindh showed an improvement of 58% compared to 56%
 KPK witnessed a decline from 67% to 66%.
 Baluchistan remained at 40%.
GRAPH:
Click icon to add picture
HEALTH AND NUTRITION

 INTRODUCTION:
In Pakistan, National health protection is increasingly endangered due to
population, environmental pollution etc.
Exposure to good health and good nutrition has a strong impact on overall health
and living condition.
The COVID-19 Pandemic will further increase the challenges to the health care
system.
HEALTH CARE:
There are currently 233,261 doctors from 220,829 in 2018.
In 2019, there were 112,123 nurses from 108,474 last year.
There are currently 132,227 hospital beds.
HEALTH EXPENDITURES:
Health Spending in Fy-2019 increased to RS 421.8 billion from RS 416.5 billion
last year. The GDP is 1.1%.
HEALTH STATUS:
DENGUE CONTROL
• In Pakistan, more than 45,000 people were diagnosed with the dengue virus.
• NHSRC founded the NIH for Dengue Control and Operation Cell.
MALARIA CONTROL:
• More than 80% of recorded case of malaria virus. Efforts made in high districts
to reduce the burden of malaria by 60%.
TUBERCULOSIS (TB):
• Pakistan bears the world’s fifth highest TB load.
• The aims of the program are to sustain the success rate of treatment at 91%,
to reduce the incidence of MDR-TB by at least 5%.
HIV/AIDS:
• Pakistan has faced the threat of an outbreak of HIV/AIDs since July 2019,
which grew to over 16000 positive patients in 2008. About 6000 died of
HIV/AIDs illness until September 2019.
CANCER TREATMENT:
• Cancer has been considered one of the deadliest types of NCDs and the
number of cases increasing.
• There are currently 18 Atomic Heritage Cancer Hospital operating the
patients with cancer and run by qualified teams of more than 2500
professionals.
GRAPH:
Top ten cancers in Pakistan:
FOOD AVAILABILITY:
• Pakistan is an agricultural economy and producing enough food to fulfill its
nutrition needs.
• The trend of food supply of essential food items are calculated using food
balance sheets.
SCHEDULE:
NUTRITION ACTIVITIES:
Two high level forums have been setup:
• Pakistan National Nutrition Coordination Council (PNNCC) within the Ehsaas
Program Planning Commission and the National Nutrition Form (NNF). This
forum maybe used to organize and address all nutrition related problems in
the country.
• SMEs have been trained to play an effective part in improving food and
nutrition security.
SPECIAL PROJECTS:
• A new cancer hospital in GILGIT BALTISTAN establishment by mid-2020.
• Establishment of cancer hospital n AZAAD JAMMU, KASHMIR and MARDAN.
• In Baluchistan, create another cancer hospital.
• The indoor facility at AECH, Jamshoro (NIMRA) is under constructed.
• At AECH, Abbottabad (INOR) to build new LINAC is in the final stage.
• Gujranwala (GINUM), the installation of radiotherapy facilities, civil work has
been completed and cobalt-60 has been bought.
• Multan (MINAR) is also buying a new LINAC.
• To upgrade AECH, NORI to purchase teletherapy devices.
• Karachi (KIRAN), BAHAWALPUR (BINO), LAHORE (INMOL) upgrade projects are
in the pipeline.
POPULATION, LABOR FORCE AND
EMPLOYMENT
 INTRODUCTION:
Pakistan population is estimated at 220,829,340.Pakistan rank’s number 5 in the
list of countries by population. The population density is 287 per km2. Pak has
the 9th largest workforce in the world with a population growth rate of 1.94%.
The highest unemployment rate is 11.56% among those aged 20-24 years
indicating youth unemployment. For providing social protection, health care and
other basic services become a challenge.
POPULATION IN 2019:
In 2019, the total population of Pakistan was 216,565,318 and the growth rate
was 2.04%.
SCHEDLE:
GRAPH:
POPULATION IN 2020:
In 2020, the total population of Pakistan is 220,829,340 and the growth rate is
2%.
GRAPH:
PRIME MINISTER KAMYAB JAWAN PROGRAM:
1. Under this scheme, RS 100 billion will be paid out to 140,000 young people.
2. Entrepreneur will create around 1 million job opportunities.
JOB OPPORTUNITIES:
• Youth Entrepreneur Scheme (YES)
• Hunermand Pak Program
• Green Youth Movement
• Startup Pakistan
• National Internship
• Jawan Markaz
YOUTH ENTREPRENEUR SCHEMES (YES):
The main objective of the yes is to provide subsidized loans to unemployment
young people aged 21 to 45 years for the establishment of new business or the
extension of existing business.
25% of loans are granted to female entrepreneurs.
INTEREST FREE LOAN PROGRAM:
The Small and Medium Enterprise authority (SMEDA), which will work together
to provide subsidized loan to young people to run a successful business.
UNDERGRADUATE SUDENT SCHOARSHIP:
Improving access to higher education by granting RS 20 billion to
undergraduate students from underprivileged families and areas and 50% of the
grants are reserved for female student.
WOMEN’s CENTRE:
Pak Bait-ul-Mal (PBM) manages 157 empowerment omen Centre across the
country to provide training in different skills and opportunities.
PBM and PPAF grant a soft loans to 13000 dismissed Centre trainees enabling
them to start their own small business.
TRANSPORT AND COMMUNICTION

 INTRODUCTION:
The use of transport and communication depends upon our need to move things
from place of their use. Humans beings use various methods to move goods,
commodities, ideas from one place to another.
TRANSPORT
• About 85% of passengers and 70% of freight traffic are came by roads every
year.
• Common modes of transport are rail, roads, marine(sea) and air transport.
• In transport sector the growth estimate are 15.2 percent.
China Pakistan Economic Corridor (CPEC):
NHA plannes and implements Khunjrab to Gwadar connectivity under the China
Pakistan Economic Corridor ( CPEC) to ensure smooth and effective movement of
goods and passengers while ensuring health.
TABLE:

RAILWAY:
Gross earnings rose by 8.4 per cent during the first eight months of FY2020
(July-February) and amounted to Rs 36,916.85 million compared to Rs 34,066.12
million in the same time last year.
GRAPH:

COMMUNICATION:
In communication IT and telecom 7 million sim cards and 10,000 banking cards
are being imported in Pakistan every month.
IT AND ITeS
• Pakistan’s IT and ITeS exports have crossed and 4.1 billion during FY2019.
• IT and ITeS exports remittance have surged to US $550.503 million at a
growth rate of 24.71 percent during july-December 2019, in comparison to US
$441.435 million during the same period last year.
Telecom Sector
Review of the Device Identification, Registration, and Blocking System (DIRBS)
policies last year.
• The commercial launch of 3 G and 4 G LTE services has opened new
opportunities for the mobile operators to generate revenue.
• For Pakistan's economy 2018 with a relatively tough year
• . Two Cellular Mobile Operators, i.e. Zong and Jazz, successfully conducted
the 5 G trials in Pakistan, in accordance with the Ministry of Information
Technology & Telecom's policy directive this year.
ENERGY

 INTRODUCTION
Energy is considered to be life line of any economy and most vital instrument of
socioeconomic development of country.
ELECTRICITY:
• The electricity sector has also shown improved performance during this year.
• The share of renewable energy has steadily increased over the year, but
declined in july-april 2020 as compared to same period in 2019. the share of
hydro and nuclear power in the energy mix also increased in FY2020 as
compared to FY2019.
GRAPH

• In 2019-20 the total energy supply mix 38pc in the country.

• In 2018-19 the installed capacity 2.5 percent to 34,282 mw.
• Whole generation increased by 2.1 percent to 87,324 GWh from 85,552 GWh.
• FY2020,  which was 33,452 MW in April 2019 ,an increase  of 7.5 percent.
OIL QUARTER:
Pakistan relies heavily on oil and gas supplies to satisfy energy demands.
• Domestic crude oil production stood at 24.6 million barrels from 21.8 million
barrels in the same timeframe last year during July-March FY2019.
• value of US$ 3.4 billion relative to 7.8 million tons with a value of US$ 2.9
billion during the same period last year.
GRAPH
SOCIAL PROTECTION

 INTRODUCTION:
Social protection is a series of measures aimed at reducing social and economic
risk and reducing extreme deficiency. Social security aims at improving needy
and helpless people's capacity to handle economic and social threats such as
unemployment, exclusion, illness, disability and old age.
According to latest estimates by the World Bank, 10% of the world’s population
or 734 million people were living on less than $1.90 a day. In the aftermath of
COVID-19, the World Bank predicts that 40 to 60 million more people will fall into
severe poverty in 2020 relative to 2019.
TRACKING THE PRO-POOR EXPENDITURES
In 2016-17, spending on pro-poor sectors stood at 9.5% of GDP, 9.2% of GDP in
2017-18, although it marginally dropped to 8.0% of GDP in 2018-19.
GRAPH

SOCIAL SAFETY PROGRAMS:

Recognizing the need to support the disadvantaged and disabled, a variety of
social safety net initiatives are being initiated by the government.
BENAZIR INCOME SUPPORT PROGRAM:
BISP’s performance tracking comes into the world's top five social safety net
programs. Successive Governments that currently stand at RS. 5000/- per quarter
per qualified recipient have gradually increased the quarterly cash award.
 The BISP is a voluntary government cash transfer program designed for the
weakest parts of society. The budget allocation has been raised from RS 102
billion in FY2016 to RS 180 billion in FY2020.
ZAKAT:
Zakat plays a significant part in alleviating poverty. In addition to helping the
vulnerable and disadvantaged, it tends
During FY 2017-18 a total of RS 7377.678 million was collected and distributed in
bulk across the Provinces / Federal Regions. Zakat funds were distributed to the
provinces and federal areas and FY2018-19 and 2018-19. 2019-20: A total of RS
9,256.66 million was raised during FY2019 and spread over FY2020 according to the
description of the table.
WORKERS WELFARE FUND:
The WWF was formed under the Workers Welfare Fund Ordinance, 1971, to provide
the urban labor with low-cost accommodation and other facilities
• During July-March, FY2019 expenditure amounted to RS 468,273 million in
3,992 scholarship cases whereas RS 1, 985, 38 million was distributed as a
marriage grant (@100,000/- which benefited 19,854 families of workers. WWF
also disbursed RS 1, 597, 55 million as a death grant (@500,000/-) to 3,195
cases of workers' disasters across the country.
• The WWF has disbursed RS 476.00 million as a death grant at RS 500,000 per
worker – covering 952 mishap cases across the world.
CLIMATE CHANGE

 INTRODUCTION
It is a change of climate that is attributed directly or indirectly to human
activity, altering the composition of the globe atmosphere.
According to German Watch, because of its geographical location, Pakistan has
been ranked globally in the top ten countries most affected by climate change in
the last 20 years. According to the Global Climate Risk Index Annual Report for
2020, Pakistan has lost 0.53 per cent of GDP per unit, suffered economic losses
of US$ 3792.52 million and witnessed 152 extreme weather events between 1999
and 2018.
Sustainable Development Targets for Pakistan:
IN 2018-19:
Pakistan invests 80 billion PKRs per annum through the public sector, while the
total financial structure of the economy is 130 billion PKRs. The 2018-19 budget
amounts to Rs. 150 billion and Pakistan will be able to expand by 2.1 per cent
per year. The nation will provide 95% of clean water and 72% of safe sanitation
(62% by government and 10% by private sector).
IN 2019-20:
With Pakistan's endorsements for Safely Managed Drinking Water and Sanitation
indicators under SDGs, the perspectives and requirements of WASH's financial
investment have changed. Pakistan has calculated its annual investment needs
for the WASH Sector by using SDG costing tools developed by the World Bank and
UNICEF. According to the 2017 census, Pakistan 's population is 207.77 million,
which is set to reach 282.81 million by 2030.
Forests:
As per Pakistan's forest protected area is 4.51 million acres, which constitutes
5.01 per cent of the total area. The timber industry accounts for 0.41 per cent of
GDP. The government has taken numerous measures to expand the area
protected by the forest.
Seasonal Tree Planting Campaigns
• Seasonal tree planting campaigns held annually and government , private
departments, organizations actively involved in planting activities to enhance
tree cover within the country.
• During the year the departments of government , private sector
organisations, security organizations and NGOs have been active in planting
operations
Green Pakistan Program:
• Ten Million Tree Tsunami Program, Phase-I. Time required to complete the 8-
year (2016-2024) programme. Program Capital Cost. Part forestry Rs 98.051
billion. Rs. 12.0316 billion Total wildlife component: Rs 110.0826 billion.
Phase-I, the Ten Billion Tree Tsunami Program, will be implemented with a
total cost of Rs. 110,0826 billion. The Federal Government will fund Rs.
69,067 billion over five years (2019-2024) on cost-sharing basis to restore
forestry and reserve Rs.7.30 billion for Pakistan 's wildlife capital
• The 50 percent weighting was assigned to MICS Household data and 50
percent to Municipality data. The 2019 and 2020 Base Year data will be
available in December 2020