Team Details:

Principal Investigator
Mr. Attiq-ur-Rehman
Deputy Director General
Pakistan Bureau of Statistics

Co-PI
Dr. Liaqat Ali
Chief Statistical Officer
Pakistan Bureau of Statistics

Research Associate
Mr. Muneeb-ur-Rehman
Statistical Assistant
Pakistan Bureau of Statistics

Research Associate
Mr. Aamir Bilal
Statistical Assistant
Pakistan Bureau of Statistics

Project Brief:

This research project will analyze trends in both nominal and real fixed investments in the private and public sectors, including investment-to-GDP ratios. The analysis will cover major industries such as agriculture, industrial activities, and services, as well as more detailed economic activities like crops, livestock, forestry, fishing, mining, and manufacturing. The project aims to compile the nominal and real stock of fixed capital on an industry basis, using linear and geometric methods. These capital stock statistics will then be utilized to calculate industry-specific consumption of fixed capital, which is crucial for developing net aggregates for the economy of Pakistan. This addresses a significant gap in the currently available macroeconomic aggregates, such as Net Value Added, Net National Income, and Net Fixed Capital Formation. Ultimately, the project will facilitate the long-term analysis of industry-specific capital-output ratios and trends in both nominal and real value-added growth.

Public Policy Relevance:

As a developing country, Pakistan is currently capital-deficient, with the lowest investment-to-GDP ratio among regional economies. This study will identify key economic activities for future investment. By providing capital stock statistics, the project will enable the compilation of capital productivity statistics, which will pave the way for efficiency analyses across various industries. Additionally, the study will assist in compiling net aggregates of macroeconomic statistics for Pakistan, aiding in evidence-based policy formulation, implementation, and evaluation. The enhanced estimates of fixed capital consumption will also lead to increased value added in public sector industries, including general government, education, and health and social work, as these sectors’ outputs are calculated by summing compensation of employees and consumption of fixed capital. Finally, the availability of fixed capital consumption estimates will facilitate the calculation of income GDP, addressing a critical gap in the National Statistical System of Pakistan.