As reported by The News, the per capita income of Pakistan increased from $1,531 to $1,629. The news indicates that the country’s economy is improving.
Many analysts believe that the government has performed well in the outgoing fiscal year and achieved all its objectives except just two, i.e. investment and saving targets. It is pertinent to note that in the South Asian region, only Pakistan has the lowest saving and investment rates.
On the other hand, Pakistan’s neighboring country, India, is doing pretty good in investment and saving sector. However, apart from lower investment and saving rates, per capita income of the country is increasing, which is important for our country.
So, the question that arises here is how per capita income increases?
The reason why per capita income increases is following.
- Pakistan Rupee stable against US Dollar
- Low population growth rate
- Increase in Economic growth
Pakistan Rupee Stable Against US Dollar
One of the main reasons that Pakistan experienced an increase in its per capita income is because rupee is being exchanged at better rates against the US Dollar.
Low Population Growth Rate
Another reason why the per capita income increased is because of low population growth rate. The fiscal year population growth estimated to 1.9% by Pakistan Bureau of Statistics. It was estimated above 2% during the last fiscal year.
Increase In Economic Growth
Over the last few months, the economic growth in the country is experiencing upward trend, which is another reason why our per capita income increased. International forums such as Bloomberg is also writing positive feedback about the country’s economy.
The Finance Minister of Pakistan, Ishaq Dar, said in a statement that the focus of the government in upcoming year fiscal year would be to achieve 6% GDP growth.