GDP growth rate is an important indicator to know how fast a country’s economy is growing. If it’s positive, it means that the economy is growing and so will jobs, personal income of people and businesses.
GDP (Gross Domestic Product) is defined as ” the market value of all the services & goods produced in a particular country in a particular time period.“
GDP growth rate is “a measure of the rate of change that a nation’s GDP goes through from one year to another.”
Economic growth or GDP growth depends on many factors. Security situation and political stability are two very important factors. Pakistan has witnessed worst situations in both of these factors and therefore it has substantially affected Pakistan’s GDP growth throughout the year.
History of Pakistan’s GDP Growth
The following chart shows Pakistan’s annual GDP growth (in percentage) from 1961 to 2017.
In last 56 years, GDP growth rate reached an all time high of 11.35% in 1970 and a record low of 0.46% in 1971.
The following chart shows average annual GDP growth in each decade:
Civilian and Military Governments
Since birth of Pakistan, there have been decades of military rule in this country. During last 56 years, 33 years were under military rule whereas 23 years were under civilian rule. The following chart illustrates GDP growth under different types of rules (military or civilian).
Now, let us see how GDP growth performed individually during each type of government (i-e military or civilian).
During civilian government’s tenures in Pakistan. the highest GDP growths were 7.7% (1992), 7.06% (1973) and 5.7% (2017). The lowest GDP growths were 1.01% (1997), 1.6% (2010) and 1.7% (2008).
During military rule, the highest GDP growths were 11.35% (1970), 10.4% (1965) and 10.2% (1980). The lowest GDP growths recorded under military rule were 0.46 (1971), 1.98% (2001) and 3.75% (1979).