Pakistan's Fiscal Year 2022 GDP Reaches $1.62 Trillion in Purchasing Power Parity (PPP) Terms

by Riaz Haq

Jun 28, 2022

Economic Survey of Pakistan 2021-22 confirms that the nation's GDP grew nearly 6% in the current fiscal year, reaching $1.62 Trillion in terms of purchasing power parity (PPP). It first crossed the trillion dollar mark in 2017. In nominal US$ terms, the size of Pakistan's economy is now $383 billion. In terms of the impact of economic growth on average Pakistanis, the per capita average daily calorie intake jumped to 2,735 calories in FY 2021-22 from 2,457 calories in 2019-20. Pakistan experienced broad-based economic growth across all key sectors in FY 21-22; manufacturing posted 9.8% growth, services 6.2% and agriculture 4.4%. The 4.4% growth in agriculture is particularly welcome; it helps reduce rural poverty.  The country's per capita income is $1,798 in nominal terms and $7,551 in PPP dollars.  These figures do not yet show up in Google searches. Under former Prime Minister Imran Khan's leadership, Pakistan succeeded in achieving outstanding economic growth and nutritional improvements in spite of surging global food prices amid the Covid19 pandemic.  Increasing energy consumption and soaring global energy prices have rapidly depleted Pakistan's forex reserves, forcing the country to seek yet another IMF bailout.  History tells us that these bailouts have been forced whenever Pakistan's GDP growth has exceeded 5%. The best way for Pakistan to accelerate its growth beyond 5% in a sustainable manner is to boost its exports by investing in export-oriented industries, and by incentivizing higher savings and investments. 

Pakistan Economic Data. Source: IMF April 2022

The IMF (International Monetary Fund) has updated its website in April, 2022 with data reported for FY 2020-21. It's not unusual for the IMF data reporting to lag by a year or more. Pakistan's Economic Survey 2021-22 was published in June, 2022. 

Sector-wise Economic Growth. Source: Economic Survey of Pakistan 2021-22

Pakistan experienced broad-based economic growth across all key sectors in FY 21-22; manufacturing posted 9.8% growth, services 6.2% and agriculture 4.4%. The 4.4% growth in agriculture is particularly welcome; it helps reduce rural poverty. 

In terms of the impact of economic growth on average Pakistanis, the per capita average daily calorie intake jumped to 2,735 calories in FY 2021-22 from 2,457 calories in 2019-20. The biggest contributor to it is the per capita consumption of fresh fruits and vegetables which soared from 53.6 Kg to 68.3 Kg, less than half of the 144 Kg (400 grams/day) recommended by the World Health Organization. Healthy food helps cut disease burdens and reduces demand on the healthcare system. Under former Prime Minister Imran Khan's leadership, Pakistan succeeded in achieving these nutritional improvements in spite of surging global food prices amid the Covid19 pandemic. 

Pakistan Per Capita Daily Calorie Consumption. Source: Economic Surveys of Pakistan

The trend of higher per capita daily calorie consumption has continued since the 1950s. It has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2735 in 2021-22. The per capita per day protein intake in grams increased from 63 to 67 to about 75 during these years. Health experts recommend that women consume at least 1,200 calories a day, and men consume at least 1,500 calories a day, says Harvard Health Publishing.  The global average has increased from 2360 kcal/person/day in the mid-1960s to 2900 kcal/person/day currently, according to the Food and Agricultural Organization (FAO). The USDA (United States Department of Agriculture) estimates that most women need 1,600 to 2,400 calories, while the majority of men need 2,000 to 3,000 calories each day to maintain a healthy weight. Global Hunger Index defines food deprivation, or undernourishment, as consumption of fewer than 1,800 calories per day.

Share of Overweight or Obese Adults. Source: Our World in Data

The share of overweight or obese adults in Pakistan's population is estimated by the World Health Organization at 28.4%. It is 20% in Bangladesh, 19.7% in India, 32.3% in China, 61.6% in Iran and 68% in the United States.   

Major Food Items Consumed in Pakistan. Source: Economic Survey of Pakistan 2021-22

The latest edition of the Economic Survey of Pakistan estimates that per capita calories come from the annual per capita consumption of  164.7 Kg of cereals, 7.3 Kg of pulses (daal), 28.3 Kg of sugar, 168.8 liters of milk, 22.5 Kg of meat, 2.9 Kg of fish, 8.1 dozen eggs, 14.5 Kg of ghee (cooking oil) and 68.3 Kg of fruits and vegetables.  Pakistan's economy grew 5.97% and agriculture outputs increased a record 4.4% in FY 2021-22, according to the Economic Survey. The 4.4% growth in agriculture has boosted consumption and supported Pakistan's rural economy.  

The minimum recommended food basket in Pakistan is made up of basic food items (cereals, pulses, fruits, vegetables, meat, milk, edible oils and sugar) to provide 2150 kcal and 60gram protein/day per capita. 

The state of Pakistan's social sector is not as dire as the headlines suggest. There are good reasons for optimism. Key indicators show that nutrition and health in Pakistan are improving but such improvements need to be accelerated. 

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  • Riaz Haq

    Sugar production/consumption in Pakistan

    Due to slight increases in area and sugarcane yields, sugar production in 2022/23 is forecast to reach 7.2 million metric tons (MMT), a marginal increase over the good 2021/22 crop. Sugar consumption for 2022/23 is forecast at 6.1 MMT (approx 26 Kg per person)  , which would be a 3.3 percent increase, reflecting population growth and demand from the expanding food processing sector. The production estimate for 2021/22 is increased reflecting the excellent crop last year. As a result, ending stocks are higher, leading to a larger exportable surplus entering 2022/23. Due to the large stocks, and competitive prices, sugar exports are forecast to reach one million tons in 2022/23

    https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFil...

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    Sugar production/consumption in India

    Assuming normal rainfall and favorable weather conditions, India’s centrifugal sugar production in marketing year (MY) 2021/22 (October-September) is forecast to grow three percent to 34.7 million metric tons (MMT) (equivalent to 31.8 MMT of crystal white sugar) on a sugarcane production forecast of 389 MMT. Uttar Pradesh will continue to be the largest sugar producing state, followed by Maharashtra and Karnataka. India will retain its existing export policy that will enable subsidized exports at six MMT. Consumption is forecast to rise two percent to 28.5 MMT (approx 20 Kg per person), as the economy recovers from the pandemic. Closing stocks are estimated at 16.5 MMT and expected to further decline as India diverts more sugar toward ethanol production to meet its domestic blending mandate.

    https://www.fas.usda.gov/data/india-sugar-annual-5#:~:text=Sugar%20....

    May 28, 2023

  • Riaz Haq

    As of March 2023, Pakistani authorities still ban genetically engineered (GE) oilseed imports. While they have made some progress in developing a system to allow for GE oilseed imports, uncertainty regarding when that system will be operative clouds the outlook for oilseed imports. Similar uncertainty surrounds domestic meal and oil production forecasts. With expectations for better cottonseed production, total oilseed production in 2023/24 is projected to increase to 2.95 million tons, a 24 percent above than 2022/23. In line with population growth, edible oil demand is forecast to grow about 5 percent, and palm oil imports are forecast to grow accordingly, reaching 3.6 million tons (15 Kg per person) in 2023/24.

    https://www.fas.usda.gov/data/pakistan-oilseeds-and-products-annual-7

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    India’s oilseeds production in marketing year (MY) 2023/2024 (October-September) is forecast to remain flat at 41.5 million metric tons (MMT), mostly unchanged from MY 2022/2023. Unseasonably heavy spring precipitation and a predicted El Niño weather pattern in the wake of severe April-June heatwaves will expose summer oilseed crops to greater incidences of plant stresses and thus impact yields. Oil meal production will remain steady at 20 MMT while exports will fall to 1.9 MMT, following an exceptional increase in exports in the current MY as southeast Asian demand has favored competitively priced Indian oil meals against other origins. India will remain among the largest consumers of edible oils and is forecast to import 14.5 MMT (10 Kg per person) of various oil commodities in the outyear. Global decline in oilseed prices and relatively low import duties have stabilized domestic edible oil prices, leading to record ending stocks in the current year.

    https://www.fas.usda.gov/data/india-oilseeds-and-products-annual-7

    May 28, 2023

  • Riaz Haq

    Pakistan’s Real Economy Is Near $1 Trillion, Says Finance Minister Aurangzeb

    https://propakistani.pk/2025/10/10/pakistans-real-economy-is-near-1...

    Speaking at a business session organized for the visiting Saudi business delegation at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, Aurangzeb said the Prime Minister is personally leading two key reform tracks — tax reforms and Pakistan’s digital transformation toward a cashless economy.

    “Pakistan’s recorded economy stands at US$411 billion, but nearly half remains undocumented,” the minister said. “The real size of our economy is closer to a trillion dollars.”

    He added that digitization and documentation would be pivotal in broadening the tax base and improving fiscal stability.

    Aurangzeb reaffirmed that Pakistan’s economic growth must be driven by the private sector, with the government providing an enabling ecosystem for business and investment. He said macroeconomic stability had been restored, with all three major global rating agencies aligned for the first time in several years.


    Referring briefly to the recently approved Pakistan–Saudi Arabia Security Pact, the minister said the agreement reflects growing confidence between the two countries and paves the way for deeper economic collaboration.

    He also noted that Pakistan is in a constructive phase of talks with the IMF, with only a few pending matters before a likely staff-level agreement in Washington.

    Aurangzeb said the government is focused on converting stabilization into growth by promoting exports, improving energy efficiency, and accelerating digital transformation. “We are now in a phase where reform, documentation, and investment must go hand in hand,” he remarked.

    on Sunday