To mitigate the negative impact of stabilization program on growth, the program was supplemented by a series of wide-ranging structural reform measures that were needed to enhance economic incentives and improve resource allocation, as well as to remove impediments to private sector development.

A sharp reduction in budget and current account deficits along with lower-than-targeted inflation in the midst of several exogenous shocks have marked the high points of the stabilization effort in the outgoing fiscal year, FY July-June 2000-2001. These developments have contributed in improving overall macroeconomic environment in the country.

Not withstanding a major success on the stabilization front, Pakistan's growth performance was adversely affected by the worst drought in the country's history and also by weaker external demand, falling commodity prices, and the persistence of higher oil prices in the international market.

The non-agriculture GDP grew by 4.3 percent.

The non-agriculture GDP, however, grew by 4.3 percent as against 3.1 percent last year. Besides agriculture, the value addition in electricity & gas distribution has also been adversely affected by drought.

After adjusting the impact of drought i.e. excluding agriculture and electricity & gas distribution, the real GDP growth provisionally estimated at 4.8 percent this year, as against 4.0 percent in the last year.

Real GDP at market prices grew by 3.3 percent in 2000-01, as against 2.6 percent of last year. The major contributors to GDP growth include manufacturing (1.2 percentage points) and services sector (2.2 percentage points). The contribution of agriculture was negative to the extent of 0.7 percentage point, it being the main victim of the unprecedented drought conditions. Agricultural growth declined by 2.5 percent in current fiscal year as against an impressive growth of 6.1 percent last year.

                                برنامج ماجستير التجارة الخارجية في آسيا