Per capita income: A Pakistani now makes $1,513 a year

Published: May 20, 2015
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STOCK IMAGE In rupee terms, there was a 7.5% growth in per capita income that increased to Rs153,060 in the outgoing fiscal year. STOCK IMAGE
ISLAMABAD: 

Pakistan’s per capita income grew by a tenth to $1,513 but targets to increase investment and savings – the two most critical economic indicators – were missed again during the outgoing fiscal year.

Worryingly, there was a continuous decline in new private investment in the electricity and gas distribution sectors that slipped to only 0.3% of Gross Domestic Product (GDP) in the outgoing fiscal year 2014-15, according to estimates of the Economic Affairs Wing of the Ministry of Finance.

In dollar terms, the per capita income has grown by an impressive rate of 9.5% to $1,513 –up by $129 per person in the outgoing fiscal year 2014-15, according to estimates. The appreciation of rupee against the US dollar remained one of the main factors behind the significant increase in per capita income. Despite the increase, the country continues to be in the league of low middle-income countries. It needs to enhance per capita income to $4,000 to be labelled a middle-income country.

In rupee terms, there was a 7.5% growth in per capita income that increased to Rs153,060 in the outgoing fiscal year.

To arrive at the per capita income figure, the Pakistan Bureau of Statistics – the government’s statistical arm – estimated 1.98% growth in the country’s population that reached 189 million this year. It then divided the total national income with the number of people and arrived at per capita income of $1,513.

The population growth rate slightly slowed down, which had been estimated at 2.01% in the last fiscal year 2013-14. In absolute terms, the PBS has estimated addition of six million people in a single year.

Like the previous year, in the current fiscal the federal government has again failed to deliver on the two most critical economic indicators. However, this time, the margin between the targets and the estimated outcomes was not as wide as in the previous fiscal year, suggesting some improvement in investment and savings in terms of total national output.

The investment to GDP ratio remained at 15.1% against a target of 15.7%, said officials at the Ministry of Finance. The ratio was slightly up from last-year’s revised rate of 15%. Savings improved to 14.5% of the GDP, shy of the target of 14.6%. Last year, the revised ratio of savings-to-GDP was 13.7%

The government has already missed the key economic growth target. Against the target of 5.1%, the economy expanded 4.2%.

The fixed investment remained at 13.5% of GDP against the target of 14.1%. It was just 0.1% up from the last year’s level. The public investment stood at 3.9% of GDP as against the target of 3.8%.

The target of private investment was also missed, which stood at 9.7% of GDP as against the target of 10.3%. Within the private investment, the investment in electricity and gas generation amounted to only 0.3%, which is not sufficient to end energy shortages, which are hampering growth.

The outcomes suggest that the government has not lived up to its commitments given to the International Monetary Fund. Under the three-year $6.7 billion bailout programme, the government has promised to promote policies for private investment in power generation through both the entry of new players as well as expanding the existing capacity of those Independent Power Producers systematically adhering to energy mix targets and least-cost generation plans.

Improving investment climate remains one of the top four priority areas of the IMF.

Published in The Express Tribune, May 20th,  2015.

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Reader Comments (38)

  • Colt
    May 20, 2015 - 4:04AM

    Rupee is overvalued by 10%!Recommend

  • May 20, 2015 - 6:45AM

    The average income will jump to $5000 today if you get rid of Military, Mullahs and Feudal. All three working against Pakistan.Recommend

  • Realitybites
    May 20, 2015 - 7:07AM

    Stop taking the IMF loans, after every few months.. then the correct picture will reflect!Recommend

  • chris
    May 20, 2015 - 8:49AM

    @Realitybites:
    I second that commentRecommend

  • The Khan-Waterloo,Ontario
    May 20, 2015 - 9:12AM

    Pakistanis are a lot richer than 1513. There’s such a huge black economy that noone accounts for. Millionaire drug lords, smugglers etc etc are all thriving in Pakistan. Recommend

  • The Khan-Waterloo,Ontario
    May 20, 2015 - 9:13AM

    I was so surprised to see so many luxury cars in Lahore, Karachi and Islamabad on my last visit to Pakistan that i refuse to believe that Pak is a poor countryRecommend

  • raider
    May 20, 2015 - 9:20AM

    actually it is increase of wealth of selected few being divided by total heads, majority of which are poor their income drastically was in decline, this is havoc being played with poor masses in this country for decades, name of the public is used and money is made. Recommend

  • S Qureshi
    May 20, 2015 - 9:52AM

    We need small but efficient govt.. Should go for 100% privatization & govt. needs to be a good regulator only. Also extensive use of technology to increase productivity in govt & private enterprises.

    @Dipak why dont you worry about your own problems in Bharat?Recommend

  • The Khan-Waterloo,Ontario
    May 20, 2015 - 10:24AM

    @raider:
    Is that what Imran Khan says? Oh dear meRecommend

  • Demolition Woman
    May 20, 2015 - 10:38AM

    I would venture to guess that Mr Zardari managed to skew Pakistan’s per capita income curve resulting in a somewhat unrealistic figure…Recommend

  • Aa
    May 20, 2015 - 10:43AM

    Check this story please. Population growth rate should be subtracted from gdp growth rate not added to itRecommend

  • Aa
    May 20, 2015 - 10:47AM

    Sorry ignore my comment, this is nominal growth in gdp per capita not realRecommend

  • Human
    May 20, 2015 - 11:00AM

    @Dipak:
    why the military???lol ….not sure what ur media teaches u about Pakistan….clearly ur an indianRecommend

  • Demolition Woman
    May 20, 2015 - 11:48AM

    @Aa: Don’t tell me…another alumni of Axact..?Recommend

  • Javed
    May 20, 2015 - 11:54AM

    I do not believe this data unless real population of Pakistan is known.Recommend

  • SecularMind
    May 20, 2015 - 11:55AM

    @Dipak:
    As respectable nehru said ” one day integration of Pakistan with India will inevitably come”
    Now it is being realized, how…
    In Pakistan their are more indian channels then Pakistani itself..
    In cinemas we love your movies inspite of vulgarity and what tapori language is used…
    If indian movie cant go without item song Pakistani movies also copy the same…
    We have advertisements on our State own channel with Indian actors and actresses.
    Our marriages are dull if our highly respectable well cultured young girls dont dance on indian songs…
    Now Debate is in progress why not Pakistan to be secular state… And once nation will agree there be no more two nation theory… And big and small brother will merge together…
    No wastage of money on ArMy, interlligence, Navy, airforce, missile tech… Just that be spend for welfare and betterment of poor people of both and then one nation….!!Recommend

  • Raghu
    May 20, 2015 - 12:18PM

    @Human You dont believe military is using more resources than it should.Just because it fights against India doesnt mean its holy.Many businesses are held by military.Arent some generals millionnaires?Recommend

  • SHR
    May 20, 2015 - 12:42PM

    @Dipak and other trolls, stop worrying about Pakistan. Give your valuable suggestions to your country where per capita income is stillUSD 118.68.Recommend

  • Pak Jawan
    May 20, 2015 - 1:06PM

    @Dipak:
    If you get rid of the military then there will be NO Pakistan left; India will invade and annex Azad Kashmir and Gilgit-Balistan.

    Afghanistan will invade and annex Pukhtoonkhwa to create their Greater Afghanistan and Sindh and Balochistan would break away with help of NATO, leaving Punjab as an independent republic.

    If you remove the military then you open up the path for the extermination of Pakistan.

    Pakistani “Liberals” don’t understand the greater game.Recommend

  • Malatesh
    May 20, 2015 - 1:31PM

    Dipak said as per Pakistan’s history, only military has destroyed image of Pakistan than anyone else. There is no freedom in Pakistan to speak against military, MQM controversy is the latest example..

    Pakistan is richer than whole India in terms of natural resources. Recommend

  • Muhammad Umair Masood
    May 20, 2015 - 1:48PM

    Factor in the undocumented economy of Pakistan & this figure can jump to probably about 2 times more than at present. The black economy in Pakistan is approximately 2.5 times what the documented economy is. Another reason why documenting the economy is necessary besides improving tax collection is that these figures will improve. Improvement in these figures will allow better credit terms on the international money markets & associated benefits.Recommend

  • Demolition Woman
    May 20, 2015 - 4:05PM

    @Dipak: And if your lot would stop stealing water from the feeder rivers to the Indus that would also help. Please attend to the needful !Recommend

  • Demolition Woman
    May 20, 2015 - 4:10PM

    @Human: Because the military has created their own ‘cottage industry’ of getting land dirt cheap and then later selling it at astronomical prices ! This has been going on since almost after Partition and is a nonproductive use of resources.Recommend

  • Human
    May 20, 2015 - 5:40PM

    @Raghu:
    only $7billion r spent on the military as of 2014-15…2.7% of the gdp as of 2013Recommend

  • Allisa
    May 20, 2015 - 6:56PM

    Census was not done for almost 25 years. The population growth rate of 2.01 is under estimated by a large margin. Even in Bangla Desh and India both of which have successful population control and their population growth rate is around 2%. I think the Pakistani population growth rate is in excess of 2.5%. Recommend

  • Naresh
    May 20, 2015 - 7:24PM

    To arrive at the per capita income figure, the Pakistan Bureau of Statistics – the government’s statistical arm – estimated 1.98% growth in the country’s population that reached 189 million this year.
    .
    Check on following Link : http://www.thenews.com.pk/Todays-News-13-13514-Population-shoots-up-by-47-percent-since-1998
    .
    It states : However, with the inclusion of population of Azad Jammu and Kashmir and Gilgit Baltistan, the population of the country would reach 197,361,691 in 2011 against 134,714,017 in 1998, showing an increase of 46.5 percent.
    .
    As such the Pakistani Population over the last Four basis an Annual Increase of Three Per Cent will be around 225 Million.
    CheersRecommend

  • Malatesh
    May 20, 2015 - 8:55PM

    @Demolition Woman:
    Who is stopping you to build dams.. It is easy to blame neighbors for every mess than finding solution for it. Recommend

  • May 20, 2015 - 9:45PM

    [email protected] Woman: you live in a world where your Mullahs tell you that India is stealing your waters. You let go more clean waters from Indus and other rivers to Arabian Seas and waste them. You get 80% of of total water thru IWT of 1960 which was Nehru’s mistake. You should be thankful to India that you are still getting plenty of waters in spite of 10 times growth of population. Be thankful to AllahRecommend

  • Demolition Woman
    May 20, 2015 - 10:22PM

    @Malatesh: That only applies if there is any water left to dam. Just keep to the agreed upon terms of the water-sharing treaty; is that so difficult to do ?Recommend

  • HistoryBuff
    May 20, 2015 - 10:30PM

    If in rupee terms, per capita income grew 7.5% and population grew 1.98%, then GDP grew at 9.6% and this would be worldwide headline news – Pakistan would be the fastest growing economy in the world. One can therefore assert with 400% certainty that this is more madrassa math.Recommend

  • asif
    May 21, 2015 - 5:02AM

    @Naresh:
    Naresh, the link you gave is for the preliminay results of 2011 housing census.That census was rejected by most demoghraphers because it was felt that in some areas figures have been inflated by some political groups to increase thier representation in assemblies.For example sindh added more people to its population than punjab even though punjab is bigger.Recommend

  • observer
    May 21, 2015 - 10:12AM

    Per capita income depends on two parameters. One, the total GDP and two, the actual population. If these numbers are incorrect, it becomes a case of “garbage in garbage out”. During Musharraf’s time he deliberately cooked up high GDP growth rates. As for the true population number who knows! Recommend

  • May 21, 2015 - 3:16PM

    The only way Pakistan can move forward is by creating and building businesses in the country. The government is trying on two fronts:Providing Security & Electricity and it can ony try to an extent.
    No one wants to open up businesses here, causing widespread unemployment in addition to stagnant growth. Every one just wants to migrate to Canada or US or Australia and get out of the place.What people don’t realize is that when risktakers leave the country it destroys it.
    If Americans start leaving their country, it would hurt US alot.Recommend

  • Himanshu
    Jun 28, 2015 - 4:12AM

    @S Qureshi:
    we have to worry because your inadequacies affects us..we spend billions to equip and maintain our defense (and its accompanying corruption scandals) because we have neighbors like you who are happy to ruin themselves for the sake of creating problems elsewhere (not just India, everywhere Pakistanis go they have created problems & terrorists)..Recommend

  • Himanshu
    Jun 28, 2015 - 4:20AM

    @SecularMind:
    India-Pak can never be one nation ..that would be a tragedy leaving millions more dying each year…But the other point regarding spending is spot on but that won’t happen until a government stronger than the military with will to control corruption and tax evasion is elected by pakistanis…but such a thing is not going to happen under present circumstances..Recommend

  • Himanshu
    Jun 28, 2015 - 4:26AM

    @Demolition Woman:
    you get what you deserveRecommend

  • Himanshu
    Jun 28, 2015 - 4:30AM

    @Hadeed:
    and what security has your govt or military provided you with…you probably have lost more people and property to these terrorists whom you so dearly protect than to India or all other ‘threats’ combined..Every one migrates because of uncertain conditions(who knows when the next military coup is about to happen) and lack of security to their investments..Recommend

  • Himanshu
    Jun 28, 2015 - 4:33AM

    @SHR:
    we don’t want to break your imaginative world but every time we see a pakistani coming and leaving daft comments on Indian blogs and websites it is infuriating and irresistible to return the favour…Recommend

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