CURRENT ISSUES 2011

GDP GROWTH

GDP growth achieved- 2% Target: 4.5% LAST YR 4.1%

OUR POPULATION GROWTH is : 2%

AGRICULTURE SECTOR

achieved – 4.7% Target: 3.5% LAST YR 1.1%

1. due to rain on time

2. govt support price of wheat Rs. 950 against Rs. 440 last year

MANUFACTURING SECTOR

Contracted (-) 3.3% as compared to 4.8% last year Target: 6.1%

1. the large scale manufacturing decline to 7.7% due to

energy crisis, high mark ups and law and order situation,

SERVICES SECTOR

Achieved: 3.6% Target: 6.1% Last yr 6.6%

Finance & Insurance Sector register negative growth of 1.25% this year

INFLATION: TARGET: 12%

AVERAGE: 22% in 10 months

FOOD CORE : 26%

NON FOOD : 19%

PER CAPITA INCOME Target: US$ 1085

Increased by 2.5% i.e US$1,046 Last yr: US$1,042

Foreign Loan

US$50 billion compared to US$46.3 billion last year an increase of 8.2% which is. 28.1% of GDP

Foreign Investment

Decline: US$42.7% to US$2.2 billion from US$3.9 billion last year

TARGETS

EXPORTS target was US$22 billion later revised to US$19.6 billion. In eleven months exports fell by 3%

IMPORT declined by 9.8% due to

1. prices of oil and commodity decrease in international market

2. govt imposed restrictions to import luxurios items

Trade deficit: 8.5 billion as against 11.2 billion last year decline of 23.5%

REMITTANCES

Remittance received in eleven months US$7.07 billion, an increase of US$ 1.17 billion, i.e 20% more than last year

highest from USA. US$1.58 billion

from UAE US$1.52 billion

from Saudi Arabia US$1.42 billion

REVENUE Target : Rs. 1250 billion

Receive Rs. 1159 billion

TAX TO GDP RATIO: 9% Target: 10%

EXPENDITURES

Foreign loan servicing:

An amount of US$ 3.6 billion has been paid during July to March an increase of US$ 650 million than last year

Payment Increase by 4.8 % of GDP or Rs. 624 billion paid

DEFENCE EXPENDITURE

The largest component of expenditure remain 3% of the GDP for the last

6 years it stood at Rs. 313 billion or 2.4 % of the GDP

SUBSIDIES

Govt paid Rs. 296 billion in form with subsidies to

KESC, WAPDA, PIA, RAILWAYS

PUBLIC SECTOR DEVELOPMENT FUND (PSDP):

Govt spend Rs. 238 billion

POVERTY: 33%