ISLAMABAD: After a gap of nearly a decade, the government has approved shifting the base year of Pakistan’s National Accounts from 2015–16 to 2025–26, a move aimed at improving the accuracy and coverage of Gross Domestic Product (GDP) estimates, The News reported. The rebasing exercise is intended to better capture structural changes in the economy by incorporating new businesses, excluding closed entities, and reflecting the expansion or contraction of existing enterprises.
The cost of the project has been revised upward to Rs903.4 million from the originally approved Rs608 million, following the inclusion of 12 additional surveys. These new surveys are aimed primarily at improving the coverage of small and medium enterprises (SMEs), which have historically been underrepresented in GDP calculations despite their significant contribution to employment and economic activity.
Pakistan last rebased its national accounts from 2005–06 to 2015–16. With the approval of the new base year, the country will now undertake another comprehensive rebasing to 2025–26, in line with international best practices that recommend updating base years every ten years. This periodic revision helps ensure that economic indicators remain relevant and reflective of current market realities.
According to the project’s stated objectives, the rebasing will improve estimates of GDP, Gross Fixed Capital Formation (GFCF), and expenditure on GDP by expanding coverage and addressing existing data gaps. The contribution of all economic sectors and sub-sectors will be reassessed in terms of both the size and volume of GDP and GFCF, allowing for a more accurate representation of sector-wise performance and investment trends.
The project also aims to update or revalidate the ratios and constant growth rates currently used in GDP estimation, while strengthening the implementation of the System of National Accounts 2008 framework. As part of the overhaul, Pakistan will introduce a Producer Price Index (PPI) into its statistical system, which will provide a more comprehensive measure of price movements at the producer level and complement existing inflation indicators.
Under the original scope, the Pakistan Bureau of Statistics (PBS) was to conduct 46 surveys and studies. With the revised scope, this number has increased to 52 surveys and studies to be carried out nationwide. The revision was proposed to incorporate a dedicated Survey or Census of SMEs, following a directive from the Prime Minister to ensure better representation of this segment of the economy.
Beyond GDP rebasing, the project also seeks to strengthen PBS’s institutional capacity, introduce new statistical tools such as a Natural Capital Account, update methodologies across key sectors, and conduct a feasibility study for establishing a Statistical Research and Training Institute. These measures are expected to enhance the overall quality, reliability, and credibility of Pakistan’s economic data.
The new base year offers several advantages. It allows for the inclusion or exclusion of sectors based on their current economic relevance, enables a clearer evaluation of sector-wise investment through improved GFCF estimates, and introduces modern indices like the PPI. The updated deflators and input-output ratios will support better policy formulation, business planning, and public understanding of economic trends, while also helping link natural capital with long-term economic growth.
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