RECORDER REPORT

PESHAWAR: The Khyber Pakhtunkhwa’s economy during the last four years has witnessed a steady growth. The GDP in FY 2013-14 witnessed a growth of 5.18 percent, which continued its steady performance in 2014-15 with a growth rate of 5.23 percent, said the second edition of the Economic Review of Khyber Pakhtunkhwa 2016-17 published recently.

In 2015-16, the economy of Khyber Pakhtunkhwa grew with 4.36 percent and in the current fiscal year 2016-17, it jumped to 4.65 percent. Continuously achieving higher GDP growth from 2013-14 to 2016-17 in an indicator that government policies are working in better direction and providing incentives and necessary support in the picking up of economic activities in the province.

These policy initiatives, the economic review said will boost business climate further in coming years and higher potential growth will be achieved soon.

It said that the provincial government has initiated a number of steps like comprehensive power policy, reforms in taxation system, youth training and employment program, which are improving business environment and creating friendlier climate for business community and other economic agents to take maximum benefits potential of the economy.

The economy of Khyber Pakhtunkhwa is characterized by diverse economic activities, broadly divided into three main sectors including agriculture, industry and services.

The commodity producing sector of the province, which comprises agriculture and industry, plays an important role in the economy. It has relatively stronger forward and backward linkages for economic well-being of the society and also key driver of progress in all macroeconomic indicators.

The commodity producing sector accounted for 44 percent of GDP during the outgoing fiscal year as compared to 46 percent in GDP in fiscal year 2011-12, which is decreasing over time due to evolutionary stages of growth as the share of non-commodity producing sector has enhanced. The agriculture sector, which plays major role in regional development, food security and poverty reduction, grew at 4.29 percent during the financial year 2016-17 as compared to 2.5 percent in FY 2015-16.

The industries sector contributes 2.3 percent to the GDP of Khyber Pakhtunkhwa in FY 2016-17 grew at the rate of 3 percent as compared to 5 percent in FY 2015-16. The low growth of industries sector is due to the decline in the growth of ma7nufacturing sub-sector during the fiscal year 2016-17.

Mining & Quarrying contributed 28 percent share in the industries and 7 percent in the GDP of Khyber Pakhtunkhwa during 2016-17. Mining and Quarrying has shown a growth of 1 percent in the current financial year as compared to 7.3 percent growth of the 2015-16.

Similarly, manufacturing sector of the province contributes 44 percent to the industries sector gross value added estimates and 6-10 percent to the total GDP of Khyber Pakhtunkhwa in the year 2016-17. Manufacturing also generates reasonable employment. According to Labour Force Survey 2013-14, the employment share of manufacturing in the total labour force is 10.18 percent.

Construction is also one of the potential component of the industries sector provides employment opportunities to 12 percent of the labour force. The contribution of construction in industries sector Gross Value Added (GVA) is 22 percent and 5 percent towards total GDP of Khyber Pakhtunkhwa during FY 2016-17. The construction sector maintained its growth of 7 percent in 2016-17.

The services sector of Khyber Pakhtunkhwa has recorded a growth of 5.47 percent in fiscal year 2016-17 as compared to 4.97 percent in 2015-16. The growth performance of services sector is broad-based, almost all components of services contributed positively.