# *Detailed SUMMARY of the article "Behind the numbers..." Editorial, Published in Dawn on June 10th, 2025:* The editorial critically examines *Pakistan*'s *Economic Survey* released by *Finance Minister Muhammad Aurangzeb*, questioning whether the claimed *economic stability* is sustainable and can translate into faster growth. While *Pakistan* has achieved *economic stability* with improved fundamentals over the last *18 months*, the *economy* remains stuck in *low-growth mode* at *2.68%* this year, falling short of the *3.6%* target and below the *five-year average* of *3.4%* and *long-term average* of *4.7%*. The economy's size increased from *$372 billion* to *$411 billion*, but this growth relies on *suppressing development* rather than structural reforms. The editorial criticizes the government's failure to tax *powerful lobbies* including *retailers*, *real estate speculators*, *big farmers*, and *high earners* in the *grey economy*. *Agricultural growth* is at a *nine-year low* while *large-scale manufacturing* is contracting, making the two major *growth drivers* problematic. The *fiscal deficit* reduction was achieved by *slashing development funds* rather than *broadening the tax base*, compromising future growth. *Per capita income* increased *9%* to *$1,824*, but with *45%* of the population below the *poverty line*, income disparity is rising. The *investment-to-GDP ratio* rose slightly to *13.8%* from *13.1%* but remains far below peers like *Vietnam* and *Bangladesh* (*31%*) and *Sri Lanka* (*23%*). *Foreign investment* remains minimal due to *policy inconsistencies*, *political instability*, and *recurring economic crises*. The editorial warns that the government faces another *tight fiscal rope* next year, with a *moderate growth target* of *4.2%* likely to be missed, emphasizing the need for *structural reforms* and *tax base expansion* rather than just celebrating stability statistics. # *Easy/Short SUMMARY*: *Pakistan*'s *Economic Survey* shows *economic stability* but *low growth* at *2.68%*, missing the *3.6%* target. The *$411 billion economy* grew by cutting *development funds* rather than taxing *powerful lobbies*. *Agriculture* and *manufacturing* are struggling, *45%* live in poverty despite *9%* income growth to *$1,824*. *Investment ratio* at *13.8%* lags behind regional peers. The editorial questions sustainability without *structural reforms* and *tax base expansion*. # *SOLUTIONS of The Problem*: ## *1. Broaden Tax Base* Target *untaxed segments* including *retailers*, *real estate speculators*, and *big farmers* to increase revenue. ## *2. Structural Economic Reforms* Implement comprehensive reforms to shift from *low-growth mode* to *sustainable high growth*. ## *3. Increase Development Spending* Restore *development funds* cut during *fiscal consolidation* to ensure future growth capacity. ## *4. Address Income Inequality* Develop programs to lift the *45%* population below *poverty line* and reduce income disparity. ## *5. Boost Investment Climate* Improve *policy consistency* and *political stability* to attract *foreign investment*. ## *6. Revive Agriculture Sector* Address *nine-year low* agricultural growth through *modernization* and *support programs*. ## *7. Strengthen Manufacturing* Reverse *large-scale manufacturing* contraction through *industrial policy* and *incentives*. ## *8. Enhance Tax Collection* Target *grey economy* and *high earners* to increase revenue without burdening existing taxpayers. ## *9. Increase Investment Ratio* Aim to match regional peers' *investment-to-GDP ratios* of *23-31%* from current *13.8%*. ## *10. Sustainable Growth Strategy* Balance *economic stability* with *growth acceleration* to avoid *boom-and-bust cycles*. # *IMPORTANT Facts and Figures Given in the article*: - *Economic growth* at *2.68%* this year, up from *2.5%* last year. - *Economy size* increased from *$372 billion* to *$411 billion*. - Growth target of *3.6%* was missed. - *Five-year average growth* of *3.4%* and *long-term average* of *4.7%*. - *Agricultural growth* at *nine-year low*. - *Fiscal deficit* down from last year's *6.8%*. - *Per capita income* increased *9%* to *$1,824*. - *45%* of population below *poverty line*. - *Investment-to-GDP ratio* rose to *13.8%* from *13.1%*. - *Vietnam* and *Bangladesh* have *31%* investment ratio, *Sri Lanka* has *23%*. - Next year's *growth target* is *4.2%*. # *IMPORTANT Facts and Figures out of the article*: - *Pakistan*'s *tax-to-GDP ratio* is *8.6%*, among lowest globally (*World Bank*, 2024). - *Regional average* investment ratio is *25-30%* for developing economies (*ADB*, 2024). - *Pakistan*'s *FDI* was only *$1.9 billion* in 2024 (*State Bank*, 2024). - *Poverty headcount* increased from *39%* to *45%* since 2018 (*World Bank*, 2024). - *Manufacturing sector* contributes *12.8%* to *GDP* (*Pakistan Bureau of Statistics*, 2024). - *Agriculture employs* 37% of *labor force* but contributes 19% to *GDP* (*FAO*, 2024). # *MCQs from the Article*: ### 1. *What was Pakistan's economic growth rate this year?* A. 2.5% *B. 2.68%* C. 3.6% D. 4.2% ### 2. *What was the original growth target that Pakistan missed?* A. 2.68% B. 3.4% *C. 3.6%* D. 4.7% ### 3. *What percentage of Pakistan's population lives below the poverty line?* A. 39% *B. 45%* C. 50% D. 55% ### 4. *What is Pakistan's current investment-to-GDP ratio?* A. 13.1% *B. 13.8%* C. 23% D. 31% ### 5. *What is the next year's growth target mentioned in the article?* A. 3.6% *B. 4.2%* C. 4.7% D. 5.0% # *VOCABULARY*: 1. *Sustainability* (پائیداری) – Ability to maintain or continue over time 2. *Introspection* (خود احتسابی) – Self-examination or reflection 3. *Dithered* (ہچکچاہٹ) – Hesitated or delayed making decisions 4. *Lobbies* (دباؤ گروپس) – Groups that influence political decisions 5. *Speculators* (سٹہ بازار) – People who trade for profit from price changes 6. *Nominal* (اسمی) – In name only, not adjusted for inflation 7. *Contracting* (سکڑنا) – Shrinking or becoming smaller 8. *Sugar rush* (عارضی تیزی) – Temporary boost followed by decline 9. *Boom-and-bust* (تیزی اور کساد) – Cycle of rapid growth followed by decline 10. *Suppressing* (دبانا) – Holding back or restraining 11. *Broadening* (وسعت) – Making wider or more inclusive 12. *Disparity* (تفاوت) – Difference or inequality 13. *Minuscule* (انتہائی کم) – Extremely small 14. *Inconsistencies* (عدم مطابقت) – Lack of consistency or reliability 15. *Tight fiscal rope* (سخت مالی پابندی) – Strict financial constraints 16. *Moderate* (اعتدال پسند) – Average or reasonable 17. *In vain* (بے فائدہ) – Without success or result 18. *Fundamentals* (بنیادی اصول) – Basic underlying principles 19. *Structural shift* (ڈھانچہ گت تبدیلی) – Major organizational change 20. *Peers* (ہم عصر) – Countries of similar status or level 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. Please be reminded not to remove the attribution label affixed to this article. It is crucial to acknowledge the source and the effort invested in creating this summary. We discourage any unauthorized distribution without proper credit. Thank you for your understanding and cooperation. 🔍 ⚡ *Explore More Summaries, Solutions, and Vocabulary Meanings* 💡 Join our WhatsApp Channel for timely and comprehensive summaries of the latest articles, along with well-crafted solutions and helpful vocabulary meanings. Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *www.dawn.com* *Behind the numbers...* *Editorial* *3–4 minutes* PAKISTAN has achieved economic stability, with the fundamentals showing significant improvement in the last year and a half. However, is the recovery that Finance Minister Muhammad Aurangzeb claimed yesterday, while releasing the Economic Survey for the outgoing year, sustainable? Can this stability be converted to faster growth? Is there even a plan to do so? With the economy stuck in low-growth mode, thanks to successive governments' failure to lay the foundation for a structural shift, the moment should have, instead, been one of introspection. Rather than praising the rulers' 'achievements', Mr Aurangzeb could have reflected on where and why they dithered on reform promises. The public should have been told why the government chose not to tax powerful lobbies — retailers, real estate speculators, big farmers, high earners operating in the grey economy, etc. It should have been informed how the government plans to target the untaxed and undertaxed segments to deepen the fragile recovery that our politicians never stop talking about. Behind the stability statistics are some hidden realities. According to the Survey, the economy is estimated to grow by a nominal 2.68pc this year from 2.5pc a year ago, with its size increasing to $411bn from $372bn. This growth rate falls short of the original target of 3.6pc and is even lower than the average growth of 3.4pc of the last five years and the long-term average of 4.7pc. The two major drivers of growth — agriculture and big industry — continue to be in trouble. Agricultural growth is at a nine-year low while large-scale manufacturing is contracting. The minister rightly warned against a 'sugar rush' for faster growth, saying the last thing the country needs is more boom-and-bust cycles. However, the question is: how long can we keep suppressing growth to protect stability? Why do we need stability if not for faster and sustainable growth? The fiscal deficit is down, and expected to remain much lower than last year's 6.8pc. This has been achieved not by increasing revenues through broadening the tax base but by slashing development funds at the expense of future growth. The 9pc increase in per capita income to $1,824 essentially means that income disparity in society is on the rise, with nearly 45pc of the population surviving below the poverty line. The investment-to-GDP ratio has risen slightly to 13.8pc from 13.1pc but remains much lower than that of our peers such as Vietnam and Bangladesh with a ratio of 31pc and Sri Lanka with 23pc. Foreign investment is minuscule due to policy inconsistencies and political instability, recurring economic crises and other ills. If anything, the government will be walking another tight fiscal rope next year, hoping to achieve a moderate growth rate of 4.2pc — most probably in vain. *Published in Dawn, June 10th, 2025*