Investment-to-GDP Expected To Increase 15.1 % In FY 2023-24

Investment-to-Gross Domestic Product (GDP) ratio is expected to increase from 13.6 percent during fiscal year 2022-23 to 15.1 percent in fiscal year 2023-24 due to stabilization and political stability

ISLAMABAD, (UrduPoint / Pakistan Point News - 9th Jun, 2023 ) :Investment-to-Gross Domestic Product (GDP) ratio is expected to increase from 13.6 percent during fiscal year 2022-23 to 15.1 percent in fiscal year 2023-24 due to stabilization and political stability.

According to the Annual Plan 2023-24 issued here on Friday, the fixed investment is also expected to grow by 40.5% on nominal basis, whereas, percent of GDP is expected to increase from 11.9% in 2022-23 to 13.4% in 2023-24 and National savings rate is targeted at 13.4% of GDP.

Meanwhile, Investment-to-GDP ratio decreased from 15.7% in 2021-22 to 13.6% in 2022-23 with decrease in both public and private investment-to-GDP ratios.

Investment grew by 10.2% in nominal terms, however, decreased by 15.4% in real terms mainly because of high inflation.

Both public and private investment increased in nominal and decreased in real terms.

National savings are estimated to increase to 12.5% of GDP in 2022-23 from 11.1% in 2021-22 mainly because of lower availability of foreign savings due to massive improvement in the current account deficit.

Pakistan's reliance on external borrowing to finance investment has decreased marginally.

The effectiveness of import compression measures is evident from increased level of domestic savings which inched up to 6.2% of GDP from 4.3% of last year.

Private consumption expanded by 24.8% in nominal terms and 1.6% in real terms during 2022-23.

Private consumption occupied the major share in expenditure on GDP and contributed positively to the GDP growth.

Moreover, net exports improved as decline in imports outpaced decline in exports.