Per capita income surges to $1,629 in outgoing fiscal

ISLAMABAD: Pakistan’s per capita income has surged to $1,629 in outgoing financial year 2016-17 against $1,531 in last financial year, registering a growth by 6.4 percent.

According to the Economic Survey for 2016-17 released on Thursday, per capita income in dollar terms has witnessed a growth of 6.4 percent in FY 2017 as compared to 1.1 percent last year. The per capita income in dollar terms has increased from $1,531 in FY 2016 to $1,629 in FY 2017. Main contributing factors for the rise in per capita income are higher real GDP growth, lower growth in population and stability of Pak rupee.

The country’s per capita income stood at $1,053 in 2007-8 which increased up to $1,334 by 2012-13. This per capita income went up from $1,389 in 2013-14 to $1,531 in FY 2015-16 and finally to $1,629 in 2016-17. The per capita income has been calculated by Finance Division on the basis of projected population of 197.3 million for financial year 2016-17 compared to population size of 193.6 million in last financial year.

There is another irony that the Ministry of Planning, Development and Reforms had projected growth trajectory in such manner which projected dismal position over the next few decades. In one of their presentation shared with the World Bank, the projected per capita income was expected to touch $5,000 by 2047. At a time when the country was claiming receiving billions of dollars in shape of China Pakistan Economic Corridor (CPEC), total investment in GDP term went up from 15.6 percent in 2015-16 to just 15.8 percent for the current fiscal year. In absolute numbers, total investment stood at Rs5,026 billion in 2016-17 against Rs4,526.7 billion for last financial year 2015-16.

The fixed investment in GDP ratio increased to 14.2 percent during the ongoing fiscal year against 14 percent in last financial year. The public investment in GDP terms went up to 4.3 percent in 2016-17 compared to 3.8 percent for the last financial year.

However, the private investment in GDP terms declined to 9.9 percent of GDP in 2016-17 from 10.2 percent during the last financial year 2015-16. The national savings in percentage of GDP has declined from 14.3 percent in 2015-16 to 13.1 percent for the ongoing financial year, registering negative growth in the ongoing financial year. In absolute figures, the national savings stood at Rs4,161 billion in 2016-17 against Rs4,173 billion in last financial year 2015-16.