Pakistan’s economic growth rate has slowed down to just 1 per cent in the second quarter of this fiscal year due to poor industrial and services sector performance, creating high unemployment and poverty. The country’s National Accounts Committee reported overall growth at 1 per cent during October-December.
The industrial sector contracted by 0.84 per cent, while the services sector saw minimal growth at 0.01 per cent. The country’s population is increasing at a rate of 2.6 per cent annually, making any growth below this threshold detrimental, leading to poverty, unemployment, and malnourishment.
Pakistan has been under an IMF programme and is implementing tight fiscal and monetary policies, while growing inflation is impacting both businesses and consumers, limiting their purchasing power. The slow growth rate underscores the negative impacts of prolonged contraction policies on the economy.
The government must address the challenges faced by the industrial and services sectors to stimulate economic growth and create job opportunities, as the current situation poses significant risks for the country’s overall stability and well-being.
