ISLAMABAD: More than 100 percent growth in power and energy sector is mind-boggling - a growth encapsulated in the upward revision of GDP growth to 3.6 percent for 2024-25 from the earlier projection of 2.7 percent- by the National Accounts Committee.
This was stated by former finance minister and a leading economist Dr Hafeez Pasha while talking to BR. The upgraded growth rate also exceeds international donor agencies projections – the IMF and the Asian Development Bank projected a growth of 2.7 percent and the World Bank 2.6 pc for fiscal year 2025.
Dr Pasha added that extravagant spending in public administration is being taken as a positive development and contradicts the government claim of austerity.
Pakistan’s energy intensity exceeds regional average: World Bank
With reference to a growth in other crops, he stated that it is very difficult to quantify growth in minor crops and one has to rely on the numbers provided by the government.
“Major contributors to economic slowdown are over Rs 1 trillion circular debt and stagnant exports that are being shown as a growth booster,” Dr Pasha remarked.
Dr Pasha further contended that the damage caused by floods and torrential rains badly damaged cotton and rice crops due to which GDP growth will remain depressed - in the range of 2 to 2.5 percent.
The government will be unable to get any relief from the IMF because of delay in assessing losses incurred by the floods he said, adding that “in 2022 floods the government, in a very short time, estimated the losses but this time the government is taking a long time, which reportedly surprised the IMF delegation during their recent visit to Pakistan.”
According to the NAC, the economy posted a stable growth of 5.66 percent during Q4 of FY 2025 attributing it to a growth in electricity, gas and water supply by 121.38pc, increase in other crops (green fodder, onions, mangoes, livestock, forestry & fishing) by 18 pc and public administration andsocial security by 12.87pc.
Copyright Business Recorder, 2025
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