Pakistans Economy

The economy on average grew 2.94% per annum since2008-09. During FY12 and FY13 the power shortagebecame so severe that it wiped out 2% from our GDP.Agriculture, Manufacturing and the Services sectorperformed below their capacities. The adverse impact ofthe economic crunch was further aggravated by the waron terror causing irreversible damage to the economy.The Agriculture sector managed a growth of 3.3%, againstthe previous years growth rate of 3.5%. Large ScaleManufacturing (LSM) sector grew by 2.8%, compared to thegrowth of 1.2% last year. The Services sector witnessed agrowth of 3.7%, as compared to 5.3% in 2012.On a positive note, inflation fell significantly and LSMshowed indications of recovery. Year 2012-13 started withsingle digit inflation, which is likely to remain during theproceeding financial 2013-14 year. The Consumer PriceIndex (CPI) for 2012-13 averaged at 7.5% as against 10.9%recorded last year.Performance of the Agriculture Sector2012-13Agriculture is central to economic growth and developmentin Pakistan and contributes 21.4% to GDP, employs 45% ofthe countrys labor force and greatly influences growthin other sectors of the economy. During 2012-13, theAgriculture sector exhibited a growth of 3.3% on the backof nominal growth in agriculture related sub sectors. Cropsgrew at 3.2%, Livestock 3.7%, Forestry 0.1% and Fishing0.7%. Important crops accounted for 25.2% of agriculturalvalue added and have experienced a growth of 2.3% in thefiscal year 2012-13, against the growth of 7.4% in 2011-12.The lower growth in important crops is attributed to thedecline in production of rice and cotton by 10.0% and 4.2%,respectively.During July-March 2012-13, banks disbursement to theAgriculture sector surged by 17% on year-on-year basis i.e.Rs. 231.0 billion or 73.0% of the target, Rs. 315.0 billion ascompared to the disbursement of Rs. 197.4 billion in thepreceding year.Sale/Production VolumeUnitsNo