Economic
Survey of
Pakistan
2002-03
An online publication by
Chapter 1. Growth and Investment
1. Growth and Investment
The outgoing fiscal year 2002-03 has
witnessed a sharp recovery in economic growth
accompanied by equally impressive performance
of agriculture and large-scale manufacturing.
Other significant achievements have been the
impressive growth in per capita income, both in
rupee and dollar terms, and national savings
reaching new heights — exceeding
total
investment and suggesting a large surplus in the
current account balance. When viewed at the
backdrop of inhospitable external environment
and uncertain geo-political situation Pakistan's
growth performance has been impressive in 2002-
03. This year has witnessed major corporate
scandals and bankruptcies in the United States,
resulting in bursting of the equity market bubble;
rising uncertainties in the run up to war in Iraq,
causing oil prices to rise sharply, and recent
outbreak of Severe Acute Respiratory Syndrome
(SARS)
virus
badly
affecting
business
environment in Asia. There developments on
international
economic
scene
created
uncertainties. The world economic outlook
remained subdued and global trade remained
sluggish during the outgoing fiscal year.
Table
1.1
documents
the
growth
performance of selected regional economies in
2000-03. The performance of the major growth
poles of the world economy (US, Japan and Euro
Area) are likely to remain subdued with Japan
and Euro Area economies growing by less than
1.0 percent in 2002-03. The United States is
expected to perform better as compared with last
year. Developing countries as a whole is expected
to grow by 4.6 percent. China and Korea in Asian
region are expected to be the star performers with
growth exceeding 6.0 percent. With the exception
of Thailand, the other ASEAN countries are
projected to grow by less than 5.0 percent. Barring
Iran, the other co