47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12Assessment (DNA) Report, approximately, 9.6million people were affected in Sindh andBalochistan as a result of these rains. The totaldamages estimated to Agriculture, Energy,Transport and Communication, Health,Environment as well as the Forestry, Water Supplyand Sanitation amount to Rs. 324.5 billion (US$3.7 billion).The rehabilitation and Cost of recoveryis estimated at Rs. 239 billion (US$ 2.8 billion).This is in addition to damages of $ 10 billion to theeconomy during 2010 floods.Commodity Producing Sector: The commodityproducing sector has performed better in theoutgoing fiscal year as compared to last year. Itsgrowth rate this year was 3.3 percent against 1.5percent during last year.Agriculture Sector is a key sector of the economyand accounts for 21 percent of GDP. Thesupportive policies of the government resulted in agrowth of 3.1 percent against 2.4 percent last year.Major Crops registered an accelerating growth of3.2 percent compared to a negative growth of 0.2percent last year. The major crops includingCotton, Sugarcane and Rice witnessed growth inproduction of 18.6 percent, 4.9 percent and 27.7percent respectively. However, preliminaryestimates of wheat production showed a negativegrowth due to late receding of flood waters inlower Sindh which hampered the timely cultivationof the wheat crop. Livestock has witnessed amarginally higher growth of 4.0 percent against thegrowth of 3.97 percent last year. Fisheries sectorshowed a growth of 1.8 percent. Forestry recordeda growth of 0.95 percent as compared to thecontraction of 0.40 percent last year.Manufacturing Sector: The growth of themanufacturing sector is estimated at 3.6 percentcompared to 3.1 percent last year. Small scalemanufacturing maintained its growth of last year at7.5 percent and slaughtering growth is estimated at4.5 percent against 4.4 percent last year. LargeScale Manufacturing (LSM) has shown a growthof 1.1 percent during July-March 2011-12 against1.0 percent last year. The Construction Sector hasshown 6.5 percent growth as compared to negativegrowth of 7.1 percent last year. Mining andQuarrying sector recorded a positive growth of 4.4percent during July-March of the fiscal year 2011-12 against negative growth of 1.3 percent last year.Electricity and gas distribution witnessed anegative growth of 1.6 percent against - 7.3 percentlast year.Services Sector: The Services sector hasregistered a growth rate of 4.0 percent during July-March of the fiscal year 2011-12 against 4.4percent last year. It is dominated by Finance andInsurance at 6.5 percent, Social and CommunityServices 6.8 percent and Wholesale and RetailTrade 3.6 percent.Consumption: Real private consumption grew at11.6 percent in fiscal year 2011-12 as compared to3.7 percent growth last year and real governmentconsumption grew at 8.2 percent as compared to5.2 percent last year. Private consumptionexpenditure has reached 75 percent of GDP;whereas public consumption expenditures are 13percent of GDP. Private consumption hasincreased on the back of sustained growth inremittances. Total consumption has reached 88.4percent of GDP in fiscal year 2011-12 as comparedto 83 percent last fiscal year. Furthermore, increasein rural income due to higher production of cropsand sharp increase in commodity prices alsosupported the consumption demand.Per capita real income grew at 2.3 percent in2011-12 as compared to 1.3 percent growth lastyear. In dollar terms, it increased from $ 1258 in2010-11 to $ 1372 in 2011-12.Real Investment has declined from 13.1 percentof GDP last year to 12.5 percent of GDP in 2011-12; fixed investment has declined to 10.9 percentof GDP in 2011-12 from 11.5 percent of GDP lastyear. Similarly Private investment also contractedto 7.9 percent of GDP in 2011-12 as compared to8.6 percent of GDP last year. Public investment asa percent of GDP is 3.0 percent in 2011-12 againstthe 2.9 percent last year. National savings are 10.7percent of GDP in 2011-12 as compared to 13.2percent in 2010-11.Foreign Direct Investment stood at $ 668 millionduring July-April 2011-12 as against $ 1293million last year. The capital flows were affectedbecause of global financial crunch and euro zonecrisis. Oil and Gas Exploration remained the majorii