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Economic survey 1990-91 statistical supplement.

Pakistan experienced some economic difficulties in 1990-91 due to Gulf War and its impact on supply of crude petroleum and petroleum products from Gulf to Pakistan, withdrawal of Pakistani labour from Iraq and Kuwait and reduction in home remittances, and destabilization of foreign trade. Loss on external account alone is estimated at $700 million in addition to increase in budgetary deficit. The increase in oil prices led to inflationary pressure.

The publication has been issued by the Economic Advisor's Wing, Finance Division, Government of Pakistan, Islamabad. It was issued in October 1991, four months after the close of the financial year 1990-91. The issue of this supplement is the continuation of the practice for some years to update the statistics for the preceding financial year, which as published in the Economic Survey are merely estimates or are incomplete as the Survey is published even before the Federal Budget in May or June.

In the Economic Survey, the statistical data or its analysis is based on the figures provided by various agencies, Provincial or Federal. These estimates are generally preliminary or incomplete and cover the first nine months of the year or less. The reader is unable to have precise picture of the socio-economic trends. This deficiency is removed by the issue of Statistical Supplement, about three/four months after the close of the year when reliable data is available for the entire preceding year, economic situation for which was reviewed in the Economic Survey. The estimates of National Income/Expenditure and related estimates are an exception. These are changed when next Economic Survey is prepared.

The Statistical Supplement for 1990-91 is somewhat different from the preceding editions in one respect. It may be considered as a great improvement. It should help research workers, news agencies and businessmen. Along with the Supplement, a 14 pages "overview" has been issued in English and a 17-pages 1990-91 has been issued in urdu. Additional two papers should help the researchers and other interested people to have a brief glance into the economic conditions and trends in the preceding financial year. It was better if these additional papers, at least English version were bound in the Supplement. In their present shape they are useful for news agencies only and not for others who cannot maintain these permanently in their present form. Libraries should try to keep these safety.

The publication is over 250 pages, paper bound and on art paper with a good get up. The Supplement for 1990-91 is bulkier than its previous editions and contains some information not included in previous issues. Statistical Supplement for the year 1989-90 was slightly more than 208 pages. One table has been increased in National Income Section. In the 1989-90 Statistical Supplement there were 11 tables while in 1990-91. Supplement there are 12. Similarly, there is an additional table in the Money, Credit and Banking Section, which covers figures about National Savings Schemes.

In Public Finance Section there is an additional table which provides figures about Federal Government Overall Budgetary Position. The number of tables in this section has increased from 6 in the 1989-90 Statistical Supplement to 7 in the 1990-91 Supplement. In Education and Health Section, number of tables has been reduced from 9 to 8. Highlights of each section has been provided in the beginning before their details are given as before. It need not be mentioned that statistics for the year 1990-91 have been added to the preceding year's data.


Pakistan experienced some economic difficulties in 1990-91 due to Gulf War and its impact on supply of crude petroleum and petroleum products from Gulf to Pakistan, withdrawal of Pakistan labour from Iraq and Kuwait and reduction in home remittances, and destabilization of foreign trade. Loss on external account alone is estimated at $700 million in addition to increase in budgetary deficit. The increase in oil prices led to inflation pressure.

Despite all these problems, the country was able to sustain its liberal trade and payments regime. This was a remarkable achievement demonstrating the spirit of self-reliance demonstrating the spirit of During the year, the newly elected Government launched a comprehensive programme of economic uplift and social reforms. The object of these reforms is to accelerate the pace of economic and social development, to privatize some public sector enterprises and deregulate the economy, reform taxation, trade and payments systems, encourage industrialization, especially in rural and underdeveloped areas and to ensure wider dispersal of opportunities and benefits of economic and social development.

The package of reforms announced before the end of June 1991, covered mostly economic issues mentioned above. It has been indicated in the "overview" issued with the Statistical Supplement that in the near future reforms were likely to be issued about social sectors such as education, health, labour, social welfare, housing, and environment.

In addition to the issue of economic reforms, the Government succeeded in resolving the issues relating to apportionment of Indus Water and sharing of revenues between the Federal and Provincial Governments with significant impact on Provincial economies. The Indus Water Accord signed on March 21, 1991 Wings to an end a 70-year old dispute and lays the foundation for efficient utilization of the water in each Province and rational investment policy in the irrigation and drainage sector. The National Finance Commission Award of 20th April 1991 places larger resources at the disposal of Provinces and it is anticipated that the financial position of the Provincial Government will be improved.

In the "Overview" economic situation for the year 1990-91 has been reviewed which is somewhat more detailed and clearer than mentioned in the Economic Survey 1990-91. Gross Domestic Product is stated to have increased by 5.6 per cent as compared to 4.6 per cent in 1989-90. The growth rate was mainly the result of 5.1 percent growth achieved in agriculture and 5.7 per cent increase in manufacturing. Following table gives a summary position of economic growth.
Growth Rate of Gross
Domestic Product
by Economic Sectors
1989-90 and 1990-91 (%)
Sectors 1989-90 1990-91
GDP(FC) 4.6 5.6
A. Commodity Sector 4.5 5.6
- Agriculture 2.7 5.1
- Mining & Quarrying 9.3 9.5
- Manufacturing 5.7 5.7
- Construction 3.1 4.7
B. Services Sector 4.8 5.5
- Trade 3.9 5.3
- Transport and
 Communications 6.8 8.4

Encouraging trend is reported to have been registered in fixed investment, and exports although the position of overall balance of payments deteriorated. Fixed investment is estimated to have increased by 16.3 per cent and the private sector is stated to have the major share in it. Exports increased by 22 per cent during the first 10 months of the year. According to the Statistical Supplement, provision trade figures for full year 1990-91 are given below:
Pakistan - Balance of Trade
 ($ million)
Years Exports Imports Balance
1988-89 4,661 7.034 -2,373
1989-90 4,954 6,935 -1,981
1990-91 6,133 7,616 -1,483

However, due to decline in the inflow of home remittances and increase in other invisible payments the current account balance of payments deficit stood at $1.85 billion against the original target of $1.33 billion. In this, the additional burden on the balance of payments due to Gulf crisis was $700 million. Inflationary pressure is estimated at 12-13 per cent in 1990-91. Major contributory factors were the increase in the imported price of oil, and impact on energy costs, supply and production constraints in case of some sensitive items, revision of the prices of some items, budgetary position and monetary expansion.

For the year 1990-91 total investment was planned at Rs. 186.9 billion and fixed investment of Rs. 171.1 billion. According to the Statistical Supplement, total investment actually was Rs. 186.5 billion and fixed investment at Rs. 170.7 billion. total investment was 16 per cent higher than 1989-90 and fixed investment 16.3 per cent higher. About 48.1 per cent of investment was made in the public sector and 51.9 per cent in private sector. About 78 per cent of total investment was financed from national savings and 22 per cent from foreign savings. These ratios in 1989-90 were 75 per cent and 25 per cent respectively.

To conclude it, the publication is a useful reference book for research workers of the Pakistan economy, students of economics and statistics, businessmen, administrators and planners.
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Author:Khan, Abdul Majid
Publication:Economic Review
Date:Dec 1, 1991
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