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The difference between budgeted and achieved real GDP growth was much greater than it has
been in previous years, displaying a need for the government to set realistic and achievable
targets for economic performance (Trading Economies, 2016).
Figure 1 - Annual real GDP growth trend 2009-2015 source: (Trading Economies, 2016)
While the GDP growth rate is commendable given Pakistan's past performance, growth is still far
below the 5-7pc required to absorb new entrants into the labour force to check rising
unemployment. If we compare these numbers with GDP growth for the entire South Asian
region — of which Pakistan is the second largest economy — we find that Pakistan’s growth of
almost 4pc in the past five years lags its regional peers in South Asia which averaged almost 7pc
(as shown below) (Trading Economies, 2016).
Bangladesh has been growing at over 6pc for the past few years while India, despite two years of
modest growth in 2012 and 2013, has been able to maintain average growth of well over 5pc in
the past five years. Growth this year was driven by gains in the agriculture, manufacturing and
services sectors (Hayat, 2016).
Figure 3 - Growth Drivers
5.2. Agriculture
The agriculture growth stood at 2.9 percent during July-March, 2014-15 as compared to 2.7
percent during the last year (Ministry of Finance, 2014).
Enlist above are some of the factors in which government of Pakistan took action to improve
GDP of the country.
Bibliography
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