National-Census-Report-2023-1.pdf - Page 8

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Bahawalpur, Multan and Rawalpindi; the High Court of Sind at Sukkur; the Peshawar High Court at Abbottabad and Dera Ismail Khan and the High Court of Baluchistan at Sibi. In 2007, the government proposed a fifth high court to cover the Islamabad Capital Territory. This proposal was blocked by the Lahore High Court, but the decision was overturned by the Supreme Court of Pakistan on 24 December 2007. As a result of the 18th constitutional amendment, the Islamabad High Court was established in 2010. The amendment also established the Mingora Bench of the Peshawar High Court and the Turbat Bench of the High Court of Baluchistan.18 1.6.4 Other Courts and Tribunals District and Sessions Courts exist in every district of each province and have civil and criminal jurisdiction. They try all offenses, including capital cases, and hear appeals from the Magistrate Courts. The Sessions Courts’ verdicts can be appealed to the High Courts.
The Magistrate Courts try all non -capital offenses, and their verdicts can be appealed to the Session Courts or the High Courts, depending on the circumstances. Magistrate Courts are allocated local jurisdictions, and there are a number of Magistrate Courts in a town or city.
In addition, there are special courts and tribunals to deal with specific kinds of cases, such as drug courts, commercial courts, labor courts, traffic courts, an insurance appellate tribunal, an income tax appellate tribunal, and special courts for bank offences. There are also special anti-terrorism courts to try offences by terrorists. The appeals from special courts go to High Courts except for labor and traffic courts, which have their own forums for appeal while the appeals from the tribunals go to th e Supreme Court. 1.7 Economy Pakistan's economic growth has experienced significant volatility over the years, largely due to the political instability, inconsistent economic policies, and complex geo -political dynamics. Political uncertainty has led to disruptions in long-term economic planning and development and therby made it challenging to implement and sustain policies needed for stable economic growth, thus resulting in periods of short boom followed by downturns. Geo -political dynamics also play a critical role, as Pakistan’s location, bordering Afghanistan, India, and China, makes it a focal point of regional and international interests. While strategic location brings opportunities, it also creates vulnerabilities, with tensions affecting trade, investment flows, and security expenditures. Together, these factors have limited Pakistan’s ability to maintain consistent economic progress, highlighting the importance of stable governance and well-planned, continuous economic policies to support long-term development. In 2023, Pakistan’s GDP, measured in constant 2015 US dollars, was approximately $400 billion, while the GDP of regional neighbors India and China reached $3.2 trillion and $17.17 trillion, respectively. This stark difference is especially notable given th at Pakistan, India, and China had comparable GDP levels in the period from 1960 to 1980. Over the decades, however, India and China implemented sustained economic reforms and diversified their economies, which enabled them to achieve rapid growth and emerg e as leading global economies. Meanwhile, Pakistan’s economic

18 High courts of Pakistan. Wikipedia. Accessed December 15, 2018, from https://en.wikipedia.org/wiki/High_courts_of_Pakistan. Pakistan Bureau of Statistics

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progress has been more limited, largely due to the factors mentioned earlier, which have hampered similar levels of growth. Figures 1.5 and 1.6 provide a comparative view of Pakistan’s GDP growth from 1960 to 2023 alongside that of the world’s five largest economies, including India and China, highlighting the widening economic gap over time.19

Figure 1.5:
Pakistan’sٔGDPٔfromٔ1960ٔtoٔ2023ٔatٔConstantٔ2015ٔUS$ٔBillion

19 Since consistent time series data from PBS’s National Accounts is not readily available, GDP data for Pakistan and other countries from the World Development Indicators has been used. Figure 1.6: GDP Comparison with the World Top Five Economies

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With regard to per capita income, Pakistan's GDP per capita in 2023 was estimated approximately 1,616 at constant 2015 US$, which is significantly lower than the global average and global median income. This indicates that Pakistan's economic output per person remains relatively low compared to both the world average and many middle-income countries. When comparing Pakistan to its regional neighbors, its GDP per capita is lower than India ($2,236), China ($12,175), and Iran ($5,668) but slightly higher than Bangladesh ($1,885). This suggests that while Pakistan's economic performance is comparable to some neighboring Asian countries, it lags behind larger economies like China and Iran. The relatively low GDP per capita underscores the need for policies aimed at enhancing productivity, industrial growth, and economic diversification to improve overall living standards in the country.

Figure 1.7: World GDP in 2023 at Constant 2015 US$

Figure 1.8: World GDP Per Capita in 2023 at Constant 2015 US$

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In the Financial Year 2023, the severe macroeconomic imbalances, flood damages, domestic supply shocks, and international economic slowdown dampened the economic growth to just 0.29 percent. Following the budget announcement in June-2022, positive economic expectations and the performance of key indicators resulted in the government projecting GDP growth of approximately 5 percent in FY2023. However, the economy lost momentum in the first quarter due to the severe downturn in the global economy and flash floods of July-August 2022 that affected 33 million people and as a result the economy suffered from significant domestic supply disruptions.
The flood damage was estimated at Rs 3.2 trillion (US$14.9 billion), the loss to GDP at Rs 3.3 trillion (US$15.2 billion), and recorded need for rehabilitation of damages at Rs 3.5 trillion (US$16.3 billion). On the international front, the prolonged Russia-Ukraine conflict adversely affected global growth and inflation remained unexpectedly high. Pakistan's GDP20 grew by -0.21% in FY2023, with 2.27% growth in agriculture, -3.74% in industrial sector, and -0.01% in services sector. The per capita income decreased from US$ 1765 to US$ 1551. This deceleration was attributed to the significant depreciation of PKR and the contraction in economic activity.
In FY2023, the Investment-to-GDP ratio was 14.1%, down from 15.6% in FY2022. Gross Fixed Capital Formation (GFCF) across the private, public, and general government sectors declined significantly by 14.9% compared to FY2022. Growth and Investment GDP Growth
-0.21% (FY2023) • Agriculture 2.27% • Industries
-3.74% • Services -0.01% Per Capita Income (US $) 1,551 Investment 14.13 (as % of GDP) Savings
13.00 (as % of GDP) At the disaggreagetd level, the revised growth estimates for the agriculture, industrial, and services sectors were estimated at 2.27%, -3.74%, and -0.01%, respectively, in FY2023. The sectoral contributions to the economy were estimated at 23.2% for agriculture, 18.4% for industry, and 58.4% for services. Over time, Pakistan’s economy has gradually shifted away from agriculture, with the sector's share in GDP declining from 31.75% in 1999-2000 to 23.2% in 2022-23, indicating a growing reliance on industry and services for economic activity.

20 Gross Value Added of agriculture, industrial and services sectors at basic prices.

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Figure 1.9: Sectoral Shares in GDP during the Financial Year 2023. 1.7.1 Agriculture Sector In July and August 2022, Pakistan experienced a heavy monsoon season that severely impacted the agriculture sector, particularly the crops and livestock sub -sectors. This damage had a spillover effect on the industry and related services, as disruptions in agricultural output affected broader supply chains. Domestic production fell short of demand, leading to a sharp increase in the prices of essential food items, which reached unprecedented levels. The total estimated damage in the agriculture sector was approximately Rs 800 billion (US$ 3.725 billion). Despite the flash floods in 2022, damage to Kharif crops, and the high base effect of the previous year’s growth of 4.27%, the agriculture sector recorded a growth of 2.27% during FY2023. The increase in important crops stood at 0.34%. Two important crops, i.e., cotton and rice, were badly damaged by the floods. A decline of 41.0% was observed in cotton which resulted in the production of 4.910 million bales as compared to 8.329 million bales in the previous year. Similarly, rice witnessed a decline of 21.5% in production standing at 7.322 million tonnes as compared to 9.323 million tonnes in FY2022. The loss in important crops to some extent was compensated by growth in the production of wheat (7.45%) and maize (15.33%). The production of wheat and maize stood at 28.161 million tonnes and 10.985 million tonnes, respectively, compared to 26.209 million tonnes and 9.525 million tonnes during the previous year.
The livestock sector, which contributed 62.23% to agriculture and 14.40% to GDP, grew by 3.70% in FY2023, up from 2.25% in the previous year. The fishing sector, accounting for 1.37% of agricultural value addition and 0.30% of GDP, saw growth of 0.60%, compared to 0.35% in the previous year. The forestry sector, contributing 2.41% to agricultural value addition and 0.60% to GDP, grew significantly at 16.63% in FY2023, compared to 4.07% in the previous year, primarily due to increased timber production. Conversely, cotton ginning, with a 0.97% share in agriculture and 0.20% in GDP, declined by 22.84% due to a drop in cotton production. Table 1.4 presents the gross value

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23.16 Note: F stands for final and R for revised estimates.

Figure 1.10: GVA Contribution of Agriculture Sub-sectors.

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1.7.2 Industrial Sector The combination of challenges, including the global economic slowdown, flood damages, and the State Bank of Pakistan's restrictive measures—such as high-interest rates, import restrictions, and limitations on letters of credit—aimed at addressing the balance of payments and curbing inflation, posed significant obstacles for businesses, consumer confidence, and investment. Consequently, the industrial sector faced setbacks from both domestic and external pressures, leading to a slowdown in performance during FY2023. Large-Scale Manufacturing , which accounts for nearly 71% of the manufacturing sector and 46% of the industrial sector, recorded a contraction of 9.87%, compared to impressive growth of 11.90% in the previous year. The two other components of manufacturing, small scale and slaughtering, posted growth of 9.14% and 6.41% during FY2023, respectively. The positive growth in small scale and slaughtering was probably driven by the substitution effect of restricted imports. Overall, the industrial sector posted negative growth of 3.74% in FY2023, compared to robust growth of 7.01% in FY2022. The mining and quarrying sector contributes approximately 1.6% to Pakistan’s GDP and directly employs around 200,000 people. This sector encompasses the extraction of natural resources such as minerals, coal, and precious stones, as well as the production of fuels like coal and petroleum, which are critical for energy generation. Additionally, it includes quarrying activities, involving the extraction of construction materials such as sand, gravel, and limestone, which are vital for industries like cement, construction, and steel. Despite its importance, the mining and quarrying sector faces considerable challenges, including outdated mining practices, insufficient investment, and weak government policies and regulations. In

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