ISLAMABAD; With rebasing of the national economy, Pakistan’s gross domestic product (GDP) increased to 5.4 % against previously estimated 3.9 % . The rebasing exercise of the national economy was done in Pakistan Muslim League Nawaz (PMLN) tenure, but that regime ended before its formal announcement. Rebasing is done by every country after every five years. The rebasing of the economy is done to add new sectors in the national economy to give weightage to the new entrants of the economy. In the case of Pakistan, its rebasing was due since 2016.
Executive Director Sustainable Development Policy Institute (SDPI) , Dr Abid Sulehri spoke to NEWSMAN on Friday on rebasing of the economy. He said rebasing actually suggests growth of the economy of the country.
He argued that rebasing, being a global phenomenon, gives a real picture of the economy of any country. According to Dr Abid Sulehri Pakistan’s economy has added many new sectors like UBER , Cream, Food Panda and many more and they demanded rebasing of the economy.
NEWSMAN got key pointers on whose basis the rebasing of the national economy has been done. These included GDP growth rate for FY21 to 5.4% from 3.9% as per provisional estimates. Agriculture grew by 3.5% vs 2.8%,
Industry grew by 7.8% vs 8.2% . Services grew by 5.7% vs 4.4% against provisional numbers of FY21
INAC approves rebased GDP on 2015-16 prices vs 2005-06 previously
previous base of GDP was underestimated by 11.3% or Rs 3.1 trillion.
Now rebasing will be done after five years
In this rebasing, Garments have been added for the first time with 6% weightage.
Along with this, many sectors’ weights have been changed after this rebasing.
Key changes include Food products (10.7% vs 11.2% earlier), beverages (3.8% vs 0.94%),
textiles excluding garments (18.2% vs 20.9%), and coke & refined petroleum products (6.7% vs 5.5%).
After rebasing
GDP size rose to $346.7bn in FY21 vs $298bn earlier
Per capita rose to $1666 vs $1543
public debt to GDP ratio has reduced to 72% from 84%. Fiscal deficit has improved by 1% to 6.1%
Tax to GDP has worsened to 9.5% vs 11%.