NATIONAL ACCOUNTS OF PAKISTAN by Syed Raisul Hasan Chief S.O.

NATIONAL ACCOUNTS OF NATIONAL ACCOUNTS OF PAKISTANPAKISTAN

bybySyed Raisul HasanSyed Raisul Hasan

Chief S.O.Chief S.O.

National Accounts StatisticsNational Accounts Statistics

The system of National Accounts Consists of coherent, consistent and integrated

set of macroeconomic accounts based on internationally agreed concepts, definitions, classifications & accounting rules

Provides a comprehensive accounting framework within which economic data is compiled for economic analysis, decision making and policy options

PURPOSE OF NATIONAL ACCOUNTS

• Monitoring structural changes and business cycles

• Enabling International Comparison

• Adopting concepts and frames for the economic statistics

NATIONAL ACCOUNTS FRAMEWORKNATIONAL ACCOUNTS FRAMEWORK Regular Activities

GDP/GNP (FC) by industrial originExpenditure on GNP (MP)GDP implicit deflator – a measure of inflationEstimates of GFCF (MP) by industrial origin

for private & public and general governmentComposition of general government current

consumption expenditure Other Activities

Input-Output Tables

ESTIMATION OF GDP/GNPESTIMATION OF GDP/GNP GDP(FC): Gross Domestic Product (GDP) is

the market value of all final goods and services produced at factor cost (FC) in the economy during a

particular period

GDP (MP) = GDP (FC) + Net Indirect Taxes GNP (FC) = GDP (FC) + Net Factor Income

(NFI) from abroad. GNP (MP) = GNP (FC) + Net Indirect Taxes

ESTIMATION APPROACHESESTIMATION APPROACHES

i)     Production Approach

ii)    Income /Cost Approach

iii)   Expenditure Approach

GROSS FIXED CAPITAL GROSS FIXED CAPITAL FORMATION (GFCF)FORMATION (GFCF)

The GFCF comprises of expenditure incurred on the acquisition of fixed assets; replacements, additions and major improvement of fixed capital viz. land improvement, buildings, civil and engineering works, machinery, transport equipment and furniture and fixture.These estimates are prepared separately for private and public sectors by economic activity as well as by capital assets.

04/19/2318

CROPSCROPSComposition Major crops Minor crops

Rice, Wheat, Cotton, Sugarcane, Gram, Maize, etc.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

04/19/2319

LIVESTOCKLIVESTOCKComposition 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

04/19/23110

FISHINGFISHINGComposition Marine Inland

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 (minus) Intermediate consumption

04/19/23111

FORESTRYFORESTRYComposition 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

04/19/23112

MINING & QUARRYINGMINING & QUARRYINGComposition Crude oil, Natural Gas, Coal including

other minerals, e.g. Rock Salt, Lime Stone, Dolomite, Gypsum, Fire clay, Phosphate, Marble, and Surface Minerals.

Intermediate Consumption

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

04/19/23113

LARGE-SCALE MANUFACTURINGLARGE-SCALE MANUFACTURINGComposition Food, Beverages, Tobacco, Textile,

Leather, Wood & Wood Products, Paper & Boards, Chemicals,Pharmaceutical, Petroleum, Metal, Engineering, Electrical, Automobileand other Industrial products/groups.

Sources Ministry of Industries, OCACCentral Board of Revenue,Provincial Bureaux of Statistics,Federal Bureau of Statistics.

For projecting growth rate, 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.

04/19/23114

SMALL-SCALE MANUFACTURINGSMALL-SCALE MANUFACTURING

Composition All un-registered small and household manufacturing establishments

Benchmark Estimates of Gross Value Added

Based on special study and SHMISurveys.

Annual Growth 7.51 % based on Study on SSMI 1999-2000

04/19/23115

CONSTRUCTIONCONSTRUCTIONComposition 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.

04/19/23116

ELECTRICITY, GAS DISTRIBUTION & ELECTRICITY, GAS DISTRIBUTION & WATER SUPPLYWATER SUPPLY

Composition

Electricity, Gas distribution And Water supply

Intermediate Consumption

Furnace Oil, Gas, Water, etc.

SourcesElectricity

Gas

Water

WAPDA, KESC, KANUPP, Pak Steel, IPPs and Captive Power units.Sui Southern and Sui Northern Gas Cos., Mari Gas etc. IRSA, Provincial Irrigation Departments.

Gross Value Added

Value of Electric, Gas & Water Supply (plus) Misc. Receipts (minus) Industrial cost & Electricity/Gas purchases.

04/19/23117

TRANSPORT, STORAGE & TRANSPORT, STORAGE & COMMUNICATIONCOMMUNICATION

Composition Railway, Air, Water, Road, PipelineTransport; Communications & Storage

Sources Pakistan Railways, PNSC, KPT, PQA,CAA, PIA & other Airlines. NTRC,Asia Petroleum, PARCO, etc. Ports,Boats, etc. Excise Departments, PTCL, PTV, Private Radio & TV, Courier Services, NLC, Town Committees (for Non-mechanized).

Gross Value Added

Value of output (plus) Misc. Receipts (minus) intermediate consumption

04/19/23118

FINANCE & INSURANCEFINANCE & INSURANCEComposition 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 Cos.

Gross Value Added

Value of output (plus) Misc. Receipts (minus) intermediate consumption

04/19/23119

WHOLESALE & RETAIL TRADEWHOLESALE & 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.

04/19/23120

OWNERSHIP OF DWELLINGSOWNERSHIP OF DWELLINGS

Coverage

Housing Units (rented as well as self occupied) and in urban andrural 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.

04/19/23121

PUBLIC ADMN. & DEFENCEPUBLIC ADMN. & DEFENCEComposition

Federal, Provincial and District Governmentsand Cantonment Boards.

Sources Budget documents of Federal, Provincial, District Governments, and Cantonment Boards.

Gross Value Added

Sum of the Wages & Salaries of all Civil and Defence Employees

(Plus)Depreciation on Govt. fixed assets

04/19/23122

COMMUNITY, SOOCIAL & PRIVATE COMMUNITY, SOOCIAL & PRIVATE SERVICESSERVICES

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

MAIN WEAKNESSESMAIN WEAKNESSES Poor Response Extrapolations and Estimations Adoption of SNA 1993