EMBASSY OF PAKISTAN ECONOMIC DIVISION 2

HIGHLIGHTS OF FISCAL YEAR 2008

The highlights of the economy during FY2008 are enumerated below:

GROWTH AND INVESTMENT

􀂃 Real GDP grew by 5.8 percent in 2007-08 as against 6.8 percent last year

and growth target of 7.2%.

􀂃 Total investment could not sustain its record level of 22.9 percent of GDP

of the last fiscal year and declined to 21.6 percent of GDP in 2007-08.

However, total investment has increased from 16.9 percent of GDP in 2002-

03 to 21.6 percent of GDP in 2007-08 — showing an increase of 5.7 percent

of GDP in five years.

􀂃 Fixed investment has declined to 20.0 percent of GDP from 21.3 percent

last year.

􀂃 Private investment grew by 16.3 percent per annum in real terms and 30.7

percent per annum in nominal terms during the period (2004-07). However,

it declined substantially to marginal 0.9 percent in real terms and 9.7

percent in nominal terms in 2007-08. The share of private sector investment

in domestic fixed investment has increased from less than two-third (64.2%)

to almost three-fourth (73.2%) in the last seven years clearly reflecting the

growing confidence of private sector in the current and future prospects of

the economy.

􀂃 Private sector investment grew by 9.7 percent this year as against 13.3

percent increase in last year in nominal terms. Major nominal growth in

private sector investment is witnessed in, mining & quarrying (15.3%),

electricity & gas (11.0%), financial business (11.4%), and wholesale and

retail trade (18.4%).

􀂃 Public sector investment has also increased by 30.0 percent per annum

during the last three years and 20.2 percent during the current fiscal year in

nominal terms.

PRIVATIZATION

􀂃 GoP has privatized around 166 units at Rs. 475.08 billion (approx US$ 8.9

billion) between January 1991 to February 2007.