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Pakistan Economic Survey 2022-2023 - Revenue Mobilisation, Investment and Trade Programme (REMIT Pakistan)

Highlights Pakistan Economic Survey 2022-23

Global Economic Situation: Global growth decelerated due to weak performance in advanced economies and tight monetary policy stance at the global level to address the problem of inflation.
The Russia-Ukraine conflict adversely affected the global economy, leading growth to decelerate and high inflation. The pass-through of increased international commodity prices is reflected in currency depreciation and elevated cost of production.
After realising 3.4% global growth in 2022, the growth is projected to slowdown to 2.8% in 2023 before rising to 3.0% in 2024.
Global inflation, which increased from 4.7% in 2021 to 8.7% in 2022, is expected to decline to 7.0% in 2023 on account of lower commodity prices.
The world trade volume increased by 2.7% during 2022, but it was lower than October’s 2022 projection of 3.5%. In the fourth quarter of 2022, the world trade volume declined heavily and pulled down the growth for the whole year.
The World Trade Volume Increased by 2.7% during 2022 and estimated to grow at 1.7% in 2023 Global Inflation 8.7%(2022) 7.0%(2023).
The projected Global Growth decelerated to 2.8% in 2023
and 3.0% in 2024. The world trade volume is estimated to grow 1.7% in 2023 before picking up to 3.2% in 2024.
Tightening global financial conditions could impact credit conditions, public finances which lead to capital outflows, debt burden, reduced savings and investment in emerging and developing economies.

Growth and Investment: The real GDP posted a growth of 0.29% in FY2023. Economy faced tremendous challenges of macroeconomic imbalances, supply shocks, and international economic slowdown which has dampened the economic growth.
In first quarter of FY2023, floods engulfed the large part of agriculture land and disrupted the domestic supply. Flood damages, GDP loss, and rehabilitation expenditures are Rs. 3.2 trillion (US$ 14.9 billion), Rs. 3.3 trillion (US$ 15.2 billion), and Rs. 3.5 trillion (US$16.3 billion), respectively.
The increase in international prices and currency depreciation which led to increase in domestic commodity prices has reduced the aggregate demand in FY2023.