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

Growth and StabilizationTable 1.2: Growth Performance of Components of Gross National Product(% Growth at Constant Factor Costs of 1999-2000)Sectors/Sub-Sectors 2007-08 2008-09 2009-10 2010-11 R 2011-12 PCommodity Producing Sector 1.3 1.8 3.56 1.47 3.281. Agriculture 1.0 4.0 0.62 2.38 3.13-Major Crops -6.4 7.8 -2.28 -0.23 3.18-Minor Crops 10.9 -1.2 -7.72 2.68 -1.26-Livestock 4.2 3.1 4.28 3.97 4.04-Forestry 9.2 2.3 2.20 -0.40 0.95-Fishing -13.0 -3.0 1.47 1.94 1.782. Mining & Quarrying 4.4 -0.5 2.23 -1.28 4.383. Manufacturing 4.8 -3.6 5.46 3.06 3.56-Large Scale 4.0 -8.1 4.79 1.15 1.78-Small Scale 7.5 7.5 7.51 7.51 7.51-Slaughtering - - 4.33 4.38 4.464. Construction -5.5 -11.2 16.34 -7.09 6.465. Electricity & Gas Distribution -23.6 59.0 6.16 -7.25 -1.62Services Sector 6.0 1.7 2.63 4.45 4.026.Transport,Storage and Communication 3.8 3.6 1.89 0.87 1.257. Wholesale & Retail Trade 5.3 -1.4 4.49 3.53 3.588. Finance & Insurance 11.1 -7.6 -12.16 -1.41 6.539. Ownership of Dwellings 3.5 3.5 3.51 1.79 3.5110. Public Administration & Defence 1.2 3.6 2.52 14.17 2.6111. Social, Community & Public Services 9.8 8.9 7.83 6.90 6.7712. GDP (Constant Factor Cost) 3.7 1.7 3.07 3.04 3.67Source: Pakistan Bureau of StatisticsP : Provisional, R : Revised, - : Included in Small ScaleCommodity Producing SectorThe commodity producing sector (CPS) comprisesof agriculture and industry. It is the most importantsector of the economy, with relatively strongerforward and backward linkages for economicdevelopment and prosperity of the country. Itaccounted for 46.5 percent of GDP during theoutgoing fiscal year. This is a decline from 49.1percent of GDP in 2001-02, indicating that theshare of the non-commodity producing sector hasincreased. The commodity producing sector hasperformed much better in outgoing fiscal yearcompared to last year; its growth rate this year was3.28 percent against only 1.47 percent in last year.The recovery in both agriculture and industrialsector, though moderate, has helped to achieve thislevel. However, the growth of the commodityproducing sector remained far below its potentialdue to largely unforeseen climatic factors.Agriculture SectorAgriculture is a key sector of the economy. Itprovides food items and raw materials forindustrial units and accounts for 21 percent ofGDP, 45 percent of employment and 60 percent ofexports. In the inevitable process of structuraltransformation its share shrank to 21.1 percent infiscal year 2011-12 compared to 24.1 percent tenyears earlier in 2001-02. Despite its decliningshare, it is the single largest sector of Pakistan’seconomy. Moreover, an overwhelming majority ofthe population depends directly or indirectly onincome generated by this sector. The agriculturesector has strong backward and forward linkages.As a result its growth has a larger impact on theoverall economic performance. The performanceof the agriculture sector remained weak due torecent catastrophic floods.However, the government’s supportive polices inthis sector resulted in a growth of 3.13 percent5