Pakistani GDP is now $800 Billion (Formal +Informal) as per ILO, SMEDA joint study

[RealNapster]

Because you guys already rebased it 2 years ago. GDP increased from $296 billion to $347 billion.

It was rebased in 2022 but till 2015-2016 rates. We need to rebase it till 2023 at least. This would still be 7+ years difference.


@Cryptonian

The GDP finally rebased

The National Accounts Committee has revised the GDP growth rate for FY21 to 5.4% from 3.9% as per provisional estimates, the highest in 14 years. In addition, the NAC has also approved rebasing GDP on

profit.pakistantoday.com.pk

 

[ziaulislam]

Pakistan’s informal economy stands at staggering $457 billion​

ILO, SMEDA unveil joint study on reducing informality in Pakistan's enterprises​

by Staff Report

4 days ago

in Business, Featured, Pakistan
LAHORE – Asad Islam Mahni, Federal Additional Secretary Industries and Production has said that the total size of the informal economy in Pakistan is around $457 billion.

Speaking at unveiling of a study on “Mapping of Barriers and Opportunities to Reduce the Informality of Enterprises in Pakistan”, he said that around 72.5 per cent of the labour force, outside agriculture, is employed by the informal sector, also covering market share of over 40pc in the GDP.
The Small and Medium Enterprises Development Authority (SMEDA) and the International Labour Organization (ILO) has carried out the study and the report was launched at a consultative workshop held to lay down the national action plan for formalization of SMEs.

Asad Islam Mahni said that the Ministry of Industries & Production is in the process of developing the National Industrial Policy. “The Policy will provide a comprehensive roadmap of re-industrialization in Pakistan, considering the regulatory & taxation regimes, as well as incentivizing investments in key sectors of the economy. Our focus is also on integrating SMEs into local, regional, and global value chains,” he added.
Judith Van Doorn, Enterprise Specialist of ILO, highlighted multi-pronged approach of ILO business formalization, emphasizing how it can be made easier, more attractive and beneficial for both business and workers. She also pointed out that formalization process in Pakistan would promote simplification of business procedures, productivity and development of SMEs.

CEO SMEDA Socrat Aman Rana said that around 5.24 million SMEs are driving economic engine. Exports of the sector are estimated at 30pc. In terms of employment, 70pc of the non-agriculture labour force is associated with the sector. The majority of SMEs, around 53pc, operate in wholesale and retail trade, hotels, and restaurants, followed by community, social, and personal services at 22pc, and manufacturing at 20pc, he said, adding that the study is a crucial first step towards recognizing that informality exists in the economy and that supporting SME formalization can have a significant impact on key development indicators.

He informed that despite being the 43rd largest economy globally in terms of GDP, a significant portion of Pakistan’s economy remains undocumented, resulting in a low tax contribution, with the Tax to GDP ratio never exceeding 13pc, clocking in at 10.2pc.

1. It makes GDP per capita around $3,333 2. As per the video, a lot of Street vendors making Rs 100,000 per month with no contribution to taxes.

Doesn't matter

First even if we take that number per capital is low

Secondly unless the economy comes in documentation it doesn't exist

 

[CallSignMaverick]

It was rebased till 2015-2016 rates. But not post these years.

View attachment 42438

The GDP finally rebased

The National Accounts Committee has revised the GDP growth rate for FY21 to 5.4% from 3.9% as per provisional estimates, the highest in 14 years. In addition, the NAC has also approved rebasing GDP on

profit.pakistantoday.com.pk

I think rebasing happens every 5/10 years.

 

[ziaulislam]

That is what companies and SBP are trying to do with Raast and Jazzcash etc., but problem is, the process of creating a bank account in Pakistan is so cumbresome, no small retailer wants to create one.

And then there is the obvious financial illiteracy. Alot of voodoo everywhere, hakoomat paisay kha jaye gi, banks steal money, bla bla bla. And then the interest argument (although that can be managed by giving everything a cloak of Islamic banking on the front).

But they are right
Govt will eat your money

I have to unblock my account every 6 months ultimately I gave up and don't keep anything govt account

We all know the saga of dollar eating and we all know how destabilized the rupee is making saving in currency all about undoable

Noone can save because noone trust the govt not to pull a ishaq dar on us (print ridiculous amounts of money a.k.a state bank borrowing)

We should learn that from Taliban they know now not to do that(print money)

 

[RealNapster]

I think rebasing happens every 5/10 years.

If I remember correctly Bangladesh rebased it's economy with 2 years gaps. This is why their economy grew so much in short time. It's not thumb rule to rebase after every 5 years. If the gap is large enough (just like we have almost 8 years gap in rebasing now), then you can even do it with 1 year gap.

If our GDP is rebased till 2024 rates. They of course we will wait till 2029 at least to rebase it again till 2029 rates.

 

[CallSignMaverick]

If I remember correctly Bangladesh rebased it's economy with 2 years gaps. This is why their economy grew so much in short time. It's not thumb rule to rebase after every 5 years. If the gap is large enough (just like we have almost 8 years gap in rebasing now), then you can even do it with 1 year gap.

If our GDP is rebased till 2024 rates. They of course we will wait till 2029 at least to rebase it again till 2029 rates.

5 years is what is generally recommended. India does every 10 years, and we'll do next year. But I doubt it will raise GDP in any significant manner. Usually rebasing doesn't increase GDP size significantly afaik.

 

[Muji.Iqbal]

The Nominal GDP is $800 billion.

I wouldn't be surprised because CIA world factbook is not honest about reporting the statistics of countries or it supports USA interests/perspective.

 

[Cryptonian]

That's just consolidation of wealth in fewer hands, middle and lower classes keep getting poorer by the day.

How many OSPs have parked their money in property market.. Because if you want to achieve "wealth distribution" , it would need collapse of Pakistani property bubble.

 

[Cryptonian]

It was rebased in 2022 but till 2015-2016 rates. We need to rebase it till 2023 at least. This would still be 7+ years difference.

View attachment 42438
@Cryptonian

The GDP finally rebased

The National Accounts Committee has revised the GDP growth rate for FY21 to 5.4% from 3.9% as per provisional estimates, the highest in 14 years. In addition, the NAC has also approved rebasing GDP on

profit.pakistantoday.com.pk

Yes it's standard practice. rebasing price points are selected from the 4-5 years prior. Even when last time India did in 2015, we selected 2011-12 as price point. So that's like 12 years old for us.

GDP rebasing is fruitful if you think that between 2015-2019/20 , substantially new business avenues have popped up in Pakistan.

 

[SoulSpokesman]

@CallSignMaverick

But I doubt it will raise GDP in any significant manner.

But if it does (as it surely will) everyone will accuse Muddijee of manipulating numbers.

Regards

 

[CallSignMaverick]

@CallSignMaverick

But I doubt it will raise GDP in any significant manner.

But if it does (as it surely will) everyone will accuse Muddijee of manipulating numbers.

Regards

At max 1-2% if at all

 

[nibba]

i want to be point man when negotiting india pakistan free trade agreement

 

[SaadH]

How many OSPs have parked their money in property market.. Because if you want to achieve "wealth distribution" , it would need collapse of Pakistani property bubble.

No, when 70% of your development budget is stolen in the second biggest province, the biggest hindrence by a country mile to wealth distribution is clearly excesses of the elites.

 

[Cryptonian]

Its the standard practice to choose 4-5 years old point while rebasing , and then waiting for 5 years before doing it again. India's base point is 2011-12 even now.
Pakistanis think that rebasing is somekind of CureAll injection to ego pumped the GDP numbers.

 

[pva]

i want to be point man when negotiting india pakistan free trade agreement

What is the benefit for us with a FTA? Which industries would benefit?