Pakistan Economic Survey present overall sate of Pakistan’s economy, most of targets were missed as per the survey report the major missed target is GDP government has set 5.2 per cent GDP growth target but according to provisional estimates the GDP growth during 2014-15 remained at 4.24 per cent. Government failing to take full advantage of the fall in global oil prices and riding on loans and grants, the country was able to shore up its foreign currency reserves. But industrial and agriculture sectors missed their targets. The 4.2% growth rate is the highest in seven years. 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 4 percent in the past 5 years which is much low compared to other countries in South Asia which averaged almost 7 percent growth.

Inflation

Inflation in Pakistan has fallen dramatically in finical year 2014-15, with the pace of decline quicker than that of some regional countries. The decline is attributed to cheaper international oil prices that fell by almost 50 percent.

GDP Growth

For finical year 2014-15 ending in June 30 2015, Pakistan’s GDP grew 4.2% which confirms two consecutive years of increased growth after a couple of years of stagnancy. The difference between budgeted and achieved real GDP growth was much greater than it has been in previous years. By comparing these numbers with GDP growth for the entire South Asian region of which Pakistan is the second largest economy we come to know that Pakistan’s growth of almost 4% in the past five years. Comparing this to Pakistan’s regional country we would clearly see that Pakistan is much behind its regional counterparts in South Asia, which averaged almost 7% growth in GDP.

Tax-to-GDP Ratio

According to the Pakistan Economic Survey 2014-2015, Pakistan’s tax revenue as a percentage of GDP has declined significantly in 2014-15, from 10.2% in finical year 2013-14 to 7.5% in finical year 2014-15. Not only Pakistan but other larger South Asian countries like India and Bangladesh have struggled on account of tax revenue, with tax-to-GDP ratios declining during last decade. Pakistan’s performance on tax-to-GDP index is not been so good during the last few years despite introducing tax reforms in 2003. Until and unless tax reforms are not introduced and measures are not taken aggressively collect the tax things cannot be changed and deficit would keep increasing every year.

 Education

Pakistan’s literacy rate fell 2 percent over finical year 2013-14, according to the Pakistan Economic Survey 2014-2015. Education expenditure as a percentage of the GDP also fell over the same period.

Average expenditure on education as a percentage of GDP has remained consistent at around 2 percent for the period 2009-2014. It is worthy to note over here that the PML (N) government had promised a 4% for the education.

Agricultural Growth

The 3.3 percent agricultural growth target was missed as the sector grew by 2.9 percent only the production targets of important crops; other crops, livestock and forestry were missed.

Services Sector Growth

 The services sector did the best, growing by 4.95 percent, which is a narrow miss of its 5.2 percent government growth target.

Industrial Growth

Industrial sector recorded growth at 3.62 percent as compared to 4.45 percent last year. The target for the industrial sector growth was set at 6.8%. Large Scale Manufacturing has registered growth of 2.38% as compared to the growth of 3.99% last year. The target was set at 7%.

Debt Servicing

Pakistan spent 44.5% of its total revenue to service debt payments in first nine months till March 2015 compared to 47% spent during the same period of previous year.