EPBD questions govt quarterly report on economic growth

Pakistan’s economic think-tank Economic Policy and Business Development has questioned the government quarterly report on GDP growth by saying that the economic growth data does not match ground realities, reported 24NewsHD TV Channel. 

The think tank says that the economic growth rate claimed in the first quarter of the fiscal year was 3.71 percent, but the GDP growth figures are incomprehensible. The economic growth rate has been shown to increase due to increased imports, and the real increase in the country's economic growth rate is not visible. 

Economic Policy and Business Development said despite the floods, the agricultural sector's output has been shown to be 2.89%, although there was a possibility of a decline in agricultural production after the severe floods. The production of important crops has fallen due to a 1.2% decline in cotton production. 

It claimed that during this period, industrial sector production has increased by 9.38 percent. The industrial sector's production has increased due to a 25 percent increase in electricity, gas and water supply, which is due to heavy subsidies, as subsidies were increased from Rs 20 billion to Rs 118 billion. 

Similarly, the 21% increase in the construction sector is not consistent with the production of cement. The output of the services sector is shown at 2.35, the think tank says, adding that the GDP numbers show a clear difference between local production and trade performance. 

Despite the agricultural sector's production, food group exports fell by 25.8 percent, while food group imports increased by 18.8 percent. Cotton production decreased by 1.2 percent, cotton ginning production fell by 12 percent, and cotton exports fell by 10 percent. Meanwhile, textile production increased due to imported cotton. 

Instead of being exported, sugar has started to be imported from Pakistan. EPBD says that without a real increase in business activities, growth will only be visible on paper. Appropriate policies should be formulated for free business activities. 

For sustainable and real economic growth, the private sector should be given the opportunity to lead and an investment environment should be provided under the guidance of the private sector.