Pakistan‘s National Accounts
1. Overview
2. Production, value added, GDP, GNP
3. Investment and consumption
4. Challenges/Difficulties
5. Plan For Implementation SNA1993/2008
1
Framework of Pakistan’s NA
 Regular Activities:
GDP/GNP (factor costs) by industrial origin (by “sector”)
Expenditure on GNP (market prices)
GDP implicit deflator – a measure of inflation
Estimates of GFCF (market prices) by industrial origin for
private & public sector and for general government
 Composition of general government consumption expenditure
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 Other Activities:
 Input-Output Tables
2
CROPS
Major crops:
Rice, Wheat, Cotton, Sugarcane, Gram, Maize,
etc.
Minor crops:
Pulses, Vegetables, Fruits, Oil seeds,
Condiments, etc.
Intermediate
Consumption:
Seeds, Fertilizer, Pesticides, Water, Transport
Charges, etc.
Sources:
Provincial Agriculture & Irrigation Departments,
IRSA, WAPDA,
Federal Directorate of Fertilizer, Pesticides
Association, etc.
Gross Value
Added:
Value of output including by-products (minus)
Intermediate consumption
3
LIVESTOCK
Composition:
Cattle and their products
Poultry and their products
Intermediate
Consumption:
Roughages (green and dry), Concentrates
(Grains, Oilcakes), Grass & Grazing, salt,
Medicines, etc.
Sources:
Livestock Division,
Agriculture Census Organization,
Pakistan Poultry Association etc.
Gross Value
Added:
Value of output including by-products (minus)
Intermediate consumption
4
FISHING
Composition:
Fish, Prawn, Shrimps, crabs, etc. from:
Ocean, Coastal and Offshore water, Fish
farms, Rivers, Canals, Lakes, Ponds, and
inundated tracts, etc.
Intermediate
Consumption:
Salt, Ice, Fuel & Lubricants, Medicines,
Chemicals, etc. and Auction Charges.
Sources:
Marine Fisheries Department, Provincial
Fisheries Departments & Federal Bureau of
Statistics.
Gross Value
Added:
Value of output
consumption
•Marine
•Inland
(minus)
Intermediate
5
FORESTRY
Composition:
Timber, Firewood, Ephedra, Grass & Grazing,
Resin, Medicinal herbs, and other Minor
Forest Products/Output.
Intermediate
Consumption:
Seeds, plantation, fertilizer, etc.
Sources:
Federal Inspectorate General of Forests.
Provincial Forest Departments.
Gross Value
Added:
Value of output (minus) Intermediate
consumption
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MINING & QUARRYING
Composition:
Intermediate
Consumption:
Crude oil, Natural Gas, Coal including other
minerals, e.g.
Rock Salt, Lime Stone,
Dolomite, Gypsum, Fire clay, Phosphate,
Marble, and Surface Minerals.
Blasting Material, Fuel and Lubricants, etc.
Sources:
Ministry of Petroleum and Natural Resources,
OGDC, Occidental, Pirkoh, Mari Gas, Coal and
other Mineral Establishments, Provincial
Mineral Departments
Gross Value
Added:
Value of output (minus) Intermediate
consumption
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LARGE-SCALE MANUFACTURING
Composition:
Sources:
Food, Beverages, Tobacco, Textile, Leather,
Wood & Wood Products, Paper & Boards,
Chemicals, Pharmaceutical, Petroleum, Metal,
Engineering, Electrical, Automobile and other
Industrial products/ groups.
Ministry of Industries, OCAC, Central Board of
Revenue, Provincial Bureaux of Statistics,
Federal Bureau of Statistics.
For calculating growth rate of value added, Quantum Index of Manufacturing
(QIM) is computed based on production data of 100 items having 75.07%
weight (bench-mark 1999-2000) of Large Scale Manufacturing Sector.
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SMALL-SCALE MANUFACTURING
Composition:
Benchmark
Estimates of
Gross Value
Added:
Annual Growth:
All un-registered small and household
manufacturing establishments
Based on special study and SHMI
Surveys.
7.51 % based on Study on SSMI
1999-2000
9
CONSTRUCTION
Composition:
All major construction activities including
repairs, additions/alterations, Land
Improvement; Buildings; Roads, Bridges,
Streets; Highways; Runways; Transport &
Railway Tracts; Telephone, Power, Gas, Oil,
Utility lines; Canals; Dams; Harbour & Barrages
etc.
Sources:
Federal, Provincial & Local Bodies,
Development Authorities, Major Public &
Private Construction Establishments, Federal
Bureau of Statistics.
Value added coefficients of Investment by kind of construction are multiplied to
Investment made in that activity during the year. Value additions of all activities are
summed up.
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ELECTRICITY, GAS DISTRIBUTION & WATER
SUPPLY
Composition:
Electricity, Gas distribution and Water supply
Intermediate
Consumption:
Furnace Oil, Gas, Water, etc.
Sources:
WAPDA, KESC, KANUPP, Pak Steel, IPPs and
Captive Power units.
Sui Southern and Sui Northern Gas Cos., Mari
Gas etc.
IRSA, Provincial Irrigation Departments.
Electricity:
Gas:
Water:
Gross Value
Added:
Value of Electric, Gas & Water Supply (plus)
Misc. Receipts (minus) Industrial cost &
Electricity/Gas purchases.
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TRANSPORT, STORAGE & COMMUNICATION
Composition:
Railway, Air, Water, Road, Pipeline
Transport, Storage & Communication
Sources:
Pakistan Railways, PNSC, KPT, PQA, KICT,
QICT, PICT,CAA, PIA & other Airlines. NTRC,
Asia Petroleum, PARCO, etc. Boats. PTCL,
NTC,Mobile Phones,ISPs,PCOs, Post Offices,
Courier Services, NLC, Town Committees (for
Non-mechanized)
Gross Value
Added:
Value of output (plus) Misc. Receipts (minus)
intermediate consumption
12
FINANCE & INSURANCE
Composition:
State Bank of Pakistan, Scheduled Banks,
DFIs, Insurance Companies, Modaraba &
Leasing Companies.
Sources:
State Bank of Pakistan, Scheduled Banks,
Development Financial Institutions, Life and
General Insurance Cos, Modarabas &
Leasing Companies.
Gross Value
Added:
Value of output (plus) Misc. Receipts (minus)
intermediate consumption
13
WHOLESALE & RETAIL TRADE
Composition:
All Agricultural, Industrial Produce and
Imports
Sources:
Provincial Governments &
Federal Bureau of Statistics
Value Added:
Total value of trade margins applied on
the marketed portions of Agriculture and
Industrial Output as well as Imports.
14
OWNERSHIP OF DWELLINGS
Coverage:
Housing Units (rented as well as self
occupied) and in urban and rural areas
Sources:
Housing Census & Rent Surveys
Value Added:
Gross Rentals (No. of Dwellings
multiplied by average annual rent
(minus)
Value of current repairs and
maintenance.
15
PUBLIC ADMN. & DEFENCE
Composition:
Federal, Provincial and District
Governments and Cantonment Boards.
Sources:
Budget documents of Federal, Provincial,
District Governments and Cantonment
Boards.
Gross Value
Added:
Sum of the compensation of employees
(all Civil and Defence)
(Plus)
Depreciation on Govt. fixed assets
16
COMMUNITY, SOCIAL &
PRIVATE SERVICES
Composition:
Education, Health, Business
(Accounting, Auditing, Advertising,
Photography etc.), Recreation, Social,
Personal & Domestic Services, etc.
Sources:
Ministry of Education, PMDC, PNC, PBA,
PEC, ACA, PAA, PHA, etc.
Gross Value
Added:
Per Worker Value Added multiplied by
Number of Workers
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Expenditure on GNP
• Private Final Consumption Expenditure
• Government Final Consumption
Expenditure
• Gross Fixed Capital Formation
• Changes in Stocks
• Exports (minus imports) of Good and
Services
• Net Factor Income from Rest of the World
18
Private Final Consumption Expenditure
Final Consumption of goods and
services of household and private nonprofit institutions serving households
Measured through
 Residually
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Government Final Consumption Expenditure
Current expenditures on goods and
services by all the departments and
establishments of:
Federal Government
 Provincial Governments
 District Governments
 Cantonments

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Weaknesses in methods
• Value added of Banks not in line with SNA
• Value added includes holding gains and property
incomes (≠ SNA)
• Construction: no survey
• Extrapolations with doubtful assumptions
• Constant prices: single deflation, only
• No PIM for calculations related to capital stock
• No independent calculation of private
consumption
• Some terms are outdated, especially “GNP”
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Weaknesses in the data base
• Economic Census of partial use, only
• Small scale manufacturing: very old data
• Extrapolating of Large Scale Manufacturing
via QIM: no sub-classification by industry
• Producer Price Index poor
• Few sub-annual figures (QIM and LFS, only)
• Business register is missing
22
The two main revisions: overview
Revision 1
part 1
(in FY 2006-07 and following)
part 2
(in FY 2008-09)
Revison 2
2012
tentatively
• Launch Quarterly National Accounts
• implement “basic prices” and other concepts of the SNA (e.g. FISIM)
• implement new surveys (especially in manufacturing)
• fully and uniformly apply PSIC 3 (ISIC Rev 3) and other classifications
• Exploit GFS for adapting PSIC and SNA, start implementing SUT / IO
• continue collecting data on GFCF; revisit concept and methods of production statistics
• introduce new price basis FY 2006 – 07
• implement new surveys (especially construction)
• implement new methods of extrapolation (esp. QIM)
• implement independent calculation of private consumption
• reconcile figures NA with figures SUT
apply new PSIC (ISIC Rev 4) and fully allocate “public sector” to “industries” •
implement first institutional sector accounts •
use IO for consistency and CF and deflators •
introduce and improve double deflation and apply quality adjustment •
implement PIM and resume capital stock calculation •
enhance scope and quality of expenditure side of GDP •
implement new surveys and introduce new price basis •
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Valuation Principles
• Factor Cost
• Market Prices
24
Price and other indicators used
• CPI, PPI, WPI, Unit Price Index of
Imports/Exports
25
Current Base Period
• 1999-2000
• The work on change of base 1999-2000 to 200506 is in progress.
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Rebasing/Linking Practice
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•
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First base of National Accounts was 1959-60
Second:
1980-81
Third:
1999-2000
Fourth:
2005-06 (work in progress)
The series from 1980-81backward has been
Backward Linked/Revised.
• No Backward Link from 1999-2000 has been
made.
• The series from 2005-06 will be linked/revised
backward and forward.
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Challenges and Difficulties Faced
• Difficulty in Collection of data for compilation of
accounts.
• Some data are given by secondary sources, only.
Government Finance Statistics is with MoF.
• No regular print productions.
• Shortage of resources (Manpower, Financial).
• Public confidence in the data is poor.
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Type of Technical Assistance Required
• Pakistan may be considered in the International
Training Programmes on National Accounts.
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Plans for 93/2008 SNA Implementation
• 1993 SNA is currently followed
• GDP/GNP at current factor cost/ constant factor
cost and market prices are compiled.
• It has been decided to implement the SNA 93
during the current change of base i.e., 2005-06
• SNA 93 will be implemented in phases.
• Adequate data and technical know how are the
two main challenges for the implementation of
SNA 93.
• Pakistan may be considered in all international
training programmes of National Accounts.
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