Economic Survey 2023-24: Pakistan’s GDP per capita increases to $1,680, size of economy at $375bn

Pakistan’s GDP per capita (or per capita income) witnessed a rebound this fiscal year, standing at $1,680 compared to $1,551 last year. Meanwhile, size of the economy increased to $375 billion based on market prices, according to the Pakistan Economic Survey 2023-24.

The GDP or economy’s size, valued at current market prices, reached Rs106,045 billion. In US dollar terms, the current fiscal year GDP converts to $375 billion.

“Stability in the exchange rate and surge in economic activity increased the per capita income by 8.3%,” the economic survey said. “The per capita income rose to US $ 1,680, from US $ 1,551 in the previous year.

“The real, fiscal, and external sectors, as well as financial markets, have demonstrated resilience and steady improvement.”

Meanwhile, the inflationary pressure that has been a concern started to ease in FY 2024. In May 2024, headline inflation reached its lowest point in 30 months. On a year-on-year basis, CPI inflation was 11.8% in May 2024, a significant decrease from 38% in May 2023.

This decline can be attributed to several factors, such as monetary tightening, fiscal consolidation, smooth supplies of food items, favorable global commodity prices, and exchange rate stability.

Meanwhile, the investment-to-GDP ratio for FY 2024 remained 13.14%, a decrease from 14.13% in FY 2023, attributed to a global slowdown, political instability in the country along with restrictive macroeconomic policies.

Gross Fixed Capital Formation (GFCF) stood at Rs12,122.5 billion, an 11.4% increase over the FY 2023. Both private and public investments grew by 15.8% and 18.2%, respectively.

The national saving rate remained steady, recorded at 13.0% in FY 2024.