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Economic Survery 2004-05: Fastest pace of growth in 20 years

ISLAMABAD (June 05 2005): Pakistan's per capita income in dollar terms rose by 12 percent to $736 from $657 in FY-05. The 'Economic Survey FY 2004-05,' released in Islamabad on Saturday, said that improvement in the average standard of living of the people was helped by the fastest pace of growth in 20 years: 8.4 percent rise in GDP, a stable exchange rate and a rise in the inflow of workers' remittances ($3.45 billion, against $3.2 billion in 10 months of last year).

Social indicators, representing the living conditions of the people, registered a marked improvement, according to the Pakistan social and living standards measurement survey.

For example, the number of households living in one-room houses declined from 38.1 percent (2000-01) to 24.2 percent (in 2004-05). Similarly, percentage of households occupying two to four-room houses increased from 55 to 68.7 percent during the same period. The number of households in five or more rooms also showed improvement from 6.9 to 7.1 percent.

Use of tap water was up from 25 to 39 percent. Percentage of households using electricity, as a source of lighting, and gas, as cooking fuel, was sharply up. Gross enrolment at primary level, after stagnating at around 71 to 72 percent during 1998 to 2000, increased substantially to 86 percent in 2004-05. Net enrolment at primary level increased by 10 percentage points (from 42 to 52 percent) in four years.

INVESTMENT: Private sector investment in 2004-05 grew by 19.3 percent as against 9.6 percent of last year, while public sector investment was down marginally by 0.4 percent as against a hefty 36.8 percent increase last year. In other words, the growth in domestic investment was entirely private sector-driven, says the survey.

As a percentage of GDP, total investment was slightly lower at 16.9 percent as against 17.3 percent last year. Fixed investment was 15.3 percent of GDP this year versus 15.6 percent last year. “A marginal decline in the rate of fixed investment and a sharp pickup in economic growth showed rise in efficiency of capital and increase in capacity utilisation or gains in productivity.

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