National Account

Federal Bureau of Statistics

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What is National Accounts

• The National Accounts is a systematic framework for the presentation of statistics that provide a wide range of information about the economy

• National accounts or System of National Accounts (SNA) provide a summary of national economy

• There are a number of aggregate measures in the national accounts, most notably gross domestic product or GDP and investment.

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Uses of National Accounts• The National Accounts helps economists to

measure the level of economic development and the rate of economic growth, the change in consumption, and investment etc for the total economy.

• It serves as a framework for macroeconomic analysis. It presents an overall picture of the functioning of an economy.

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Uses of National Accounts• GDP at constant prices indicates economic

growth to measure the performance of the economy over time or in comparison with other countries/in comparison with previous periods.

• With data from NA, economists can forecast the future growth of the economy.

• impacts on the economy and its sectors of alternative government policies. It also serve as a tool for policy making and planning.

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Framework of Pakistan’s NA Regular Activities:

GDP/GNP (factor costs) by industrial origin (by “sector”)Expenditure on GNP (market prices)Estimates of GFCF (market prices) by industrial origin for

private & public sector and for general government

Other Activities: Input-Output TablesRebasing of National Accounts from 1999-2000 to 2005-06National Health Accounts

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Sectors of the Economy

A. Agriculture Sector• Crops

Major CropsMinor Crops

• Livestock• Fishery• Forestry

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Sectors of the Economy

B. Industrial Sector Mining and Quarrying Manufacturing

Large ScaleSmall ScaleSlaughtering

Construction Electricity, Gas & Water Supply

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Sectors of the Economy

C. Services Sector Transport, Storage & Communication Wholesale & Retail Trade Finance & Insurance Ownership of Dwellings Public Admn. & Defence Social, Community & Personal Services

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CROPS

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Value of output including by-products (minus) Intermediate consumption

Gross Value Added:

Provincial Agriculture & Irrigation Departments, IRSA, WAPDA,Federal Directorate of Fertilizer, Pesticides Association, etc.

Sources:

Seeds, Fertilizer, Pesticides, Water, Transport Charges, etc.

Intermediate Consumption:

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

Pulses, Vegetables, Fruits, Oil seeds, Condiments, etc.

Major crops: Minor crops:

InputsOutput

Quantity(of Production)

Prices(Crops)

125 kinds of Crops

Value

•Seeds•Fertilizers•Ploughing & Planking•Pesticides, weeding, Spraying etc•Water•Transportation charges•Wastages

Gross Value Added of Crop Production(Output minus Input)

LIVESTOCK

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Value of output including by-products (minus) Intermediate consumption

Gross Value Added:

Livestock Division,Agriculture Census Organization, Pakistan Poultry Association etc.

Sources:

Roughages (green and dry), Concentrates (Grains, Oilcakes), Grass & Grazing, salt, Medicines, etc.

Intermediate Consumption:

Cattle and their productsPoultry and their products

Composition:

Gross Output1. Net Sale (Sale of Animals – Purchase

of Animals)=Sale for Slaughtering)2. Natural Growth3. Livestock Products

Milk Draught Power Dung & Urine Wool & Hair

4. Poultry Products Broilers (Farming) Layers (Farming) Poultry (Desi) Ducks, Drakes & Ducklings Breeding Stock (Farming) Eggs (Farming) Eggs (Desi)

Intermediate Consumption

• Fodder– Green– Dry– Concentrate

• Poultry Inputs• Other Inputs

– Transportation, POL, etc– Medical care etc– Interest (Bank charges)– Repair & Maintenance– Rent Paid (Building, Machinery etc)– Value of chicks

FISHING

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Value of output (minus) Intermediate consumption

Gross Value Added:

Marine Fisheries Department, Provincial Fisheries Departments & Federal Bureau of Statistics.

Sources:

Salt, Ice, Fuel & Lubricants, Medicines, Chemicals, etc. and Auction Charges.

Intermediate Consumption:

Fish, Prawn, Shrimps, crabs, etc. from:Ocean, Coastal and Offshore water, Fish farms, Rivers, Canals, Lakes, Ponds, and inundated tracts, etc.

Composition:•Marine•Inland

Gross Output

Production Price

Value of Output

Intermediate consumption

Marine Fishing• Ice• Salt• Fuel• Gas• Others

Inland Fishing• Seed• Feed• POL /Elect• Water• Other

FORESTRY

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Value of output (minus) Intermediate consumption

Gross Value Added:

Federal Inspectorate General of Forests.Provincial Forest Departments.

Sources:

Seeds, plantation, fertilizer, etc.Intermediate Consumption:

Timber, Firewood, Ephedra, Grass & Grazing, Resin, Medicinal herbs, and other Minor Forest Products/Output.

Composition:

Forestry• Gross Output• Timber• Firewood• Medicinal Herbs• Mazari & Gum• Wild Mushroom• Honey & Wax• Silk Worms• Wild Fruits

Intermediate Consumption=24.99% of Timber and Firewood

MINING & QUARRYING

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Value of output (minus) Intermediate consumption

Gross Value Added:

Ministry of Petroleum and Natural Resources, OGDC, etc. Coal and other Mineral Establishments, Provincial Mineral Departments

Sources:

Blasting Material, Fuel and Lubricants, etc.Intermediate Consumption:

Crude oil, Natural Gas, Coal including other minerals, e.g. Rock Salt, Lime Stone, Dolomite, Gypsum, Fire clay, Phosphate, Marble, Surface Minerals and Allied Services.

Composition:

LARGE-SCALE MANUFACTURING

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For calculating growth rate of value added, 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.

Ministry of Industries, OCAC, Provincial Bureaus of Statistics, Federal Bureau of Statistics.

Sources:

Food, Beverages, Tobacco, Textile, Leather, Wood & Wood Products, Paper & Boards, Chemicals, Pharmaceutical, Petroleum, Metal, Engineering, Electrical, Automobile and other Industrial products/ groups.

Composition:

SMALL-SCALE MANUFACTURING

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7.51 % based on Study on SSMI 1999-2000

Annual Growth:

Based on special study and SHMISurveys.

Benchmark Estimates of Gross Value Added:

All un-registered small and household manufacturing establishments

Composition:

SLAUGHTERING

The products meat (beef, mutton, chicken) and other products (hides, skins, bones and blood etc) constitute output of slaughtering.

Annual Growth:

Benchmark Estimates of Gross Value Added:

Composition:

The slaughtering industry relates to manufacturing whereas the livestock is a part of agriculture sector.

Based on special study (1999-2000).Value of output (minus) Intermediate consumption

Intermediate consumption: Value of Animals (Buffalo, Cattle, Sheep, Goat,

etc and Poultry (Farm and Desi). Other inputs

For calculating GVA of subsequent years, growth of meat is applied

Source:Livestock Division,MINFAL

CONSTRUCTION

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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.

Federal, Provincial & Local Bodies,Development Authorities, Major Public & Private Construction Establishments, Federal Bureau of Statistics.

Sources:

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.

Composition:

ELECTRICITY, GAS DISTRIBUTION & WATER SUPPLY

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

Gross Value Added:

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

Sources:Electricity:

Gas:

Water:

Furnace Oil, Gas, Water, etc.Intermediate Consumption:

Electricity, Gas distribution and Water supplyComposition:

TRANSPORT, STORAGE & COMMUNICATION

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

Gross Value Added:

Pakistan Railways, PNSC, KPT, PQA, KICT, QICT, PICT,CAA, PIA & other Airlines. NTRC,Asia Petroleum, PARCO, etc. Boats. PTCL, NTC,Mobile Phones,ISPs,PCOs, Post Offices, Courier Services, NLC, Town Committees (for Non-mechanized)

Sources:

Railway, Air, Water, Road, PipelineTransport, Storage & Communication

Composition:

FINANCE & INSURANCE

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

Gross Value Added:

State Bank of Pakistan, Scheduled Banks, Development Financial Institutions, Life and General Insurance Cos, Modarabas & Leasing Companies.

Sources:

State Bank of Pakistan, Scheduled Banks, DFIs, Insurance Companies, Modaraba & Leasing Companies.

Composition:

WHOLESALE & RETAIL TRADE

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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.

OWNERSHIP OF DWELLINGS

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Coverage:

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

PUBLIC ADMN. & DEFENCE

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Composition:

Federal, Provincial and District Governments and Cantonment Boards.

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

Gross Value Added:

Sum of the compensation of employees

(all Civil and Defence) (Plus)

Depreciation on Govt. fixed assets

COMMUNITY, SOCIAL & PERSONAL SERVICES

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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

Gross National Product of Pakistan At constant factor cost of 1999-2000 –

Rs. Million

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    2008-09 2009-10 2010-11 % age change

S. No Sectors/ Final Revised Provisional 2009-10/ 2010-11/

      2008-09 2009-10

A. Agriculture Sector 1195002 1201945 1216523 0.58 1.21

  1. Crops 539336 519132 509393 -3.75 -1.88

  i) Major Crops 402135 392651 376822 -2.36 -4.03

  ii) Minor Crops 137201 126481 132571 -7.81 4.81

  2. Livestock 620253 646783 670743 4.28 3.70

  3. Fishing 21319 21626 22041 1.44 1.92

  4. Forestry 14094 14404 14346 2.20 -0.40

B. Industrial Sector 1385669 1500345 1499360 8.28 -0.07

  1. Mininig & Quarrying 137348 140378 140971 2.21 0.42

  2. Manufacturing 998846 1054276 1085440 5.55 2.96

  i) Large Scale 665285 698062 704936 4.93 0.98

  ii) Small Scale 258173 277562 298407 7.51 7.51

  iii) Slaughering 75388 78652 82097 4.33 4.38

  3. Construction 112884 144985 146169 28.44 0.82

  4. Electricity, Gas & Water Supply 136591 160706 126780 17.65 -21.11

A+B Commodity Producing Sector 2580671 2702290 2715883 4.71 0.50

C. Services Sector 2895045 2979241 3101523 2.91 4.10

  1. Transport, St. & Communication 558703 574101 581388 2.76 1.27

  2. Wholesale and Retail Trade 921375 963368 1000477 4.56 3.85

  3. Finance & insurance 312818 277555 260172 -11.27 -6.26

  4. Ownership of Dwellings 150629 155916 158707 3.51 1.79

  5. Public Administration & Defence 332108 340508 385506 2.53 13.21

  6. Social, Community & P. Services 619412 667793 715273 7.81 7.11D. Gross Domestic Product (FC) 5475716 5681531 5817406 3.76 2.39

Rebasing/Linking Practice• First base: 1959-60• Second: 1980-81• Third: 1999-2000• Fourth: 2005-06 (work in progress)• The backward and forward revision will be

undertaken after rebasing of 2005-06.

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Studies for Rebasing of NAo Inland Fishing

o Marine Fishing

o Road Transport (Intercity and Intra-city)

o Public Call Offices and Pay Phone Companies

o Cable Operators and Internet Service Providers (ISPs)

o Courier Services/ Franchised Post Offices

o Shipping, Goods Forwarding and Custom Clearing Agents

o Travel Agents, Tour Operators & Franchised Booking Agents

Studies for Rebasing of NAo Study on Input output Structure of Crops

o Foreign Exchange companies

o Stock Exchange Brokers

o Inland Water Transport

o Study of Miscellaneous Services

o Study of News Papers, Weekly/Monthly Periodicals

o Study of Cooperative Societies

o Study of Stone Crushing Establishments

o Study of International Freight Forwarders

Surveys for Rebasing of NA

o Family Budget Survey

o Census of Electricity & Gas Distribution (including CNG, LPG)

o Census of Mining & Quarrying

o Census of Manufacturing Industries

o Survey of Small & Household Manufacturing Industries

o Survey of Whole Sale and Retail Trade, Hotel and Restaurants

o Construction Survey o Rent Survey

o Survey of Water Supply & Sanitation

o Survey of Warehousing and Storage

o Survey of Non-Governmental Organizations (NGOs)

o Survey of Social, Recreational, Community and Personal Services

Why rebasing of National Accounts

• To capture the real and reliable estimates of Gross Domestic Product(GDP). Gross Fixed Capital Formation(GFCF) by enlarging the sphere and coverage of macro - economic data and estimates as per guidelines of System of National Accounts(SNA)

• The rebasing is a requirement of the government policy and decision makers, researchers and national and international users of Pakistan macro-economic data and it is also international practice.

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Why rebasing of National Accounts

• The present National Accounts estimates are based on 1999-2000 and have become outdated due to fast and rapid changes in economy and economic structure. National Accounts Committee recommended that the base should be changed to 2005-06 and new estimates may be prepared. Therefore, a project “Rebasing of National Accounts from 1999-2000 to 2005-06” was initiated in 2006.

– The implementation involves the following activities:– New surveys / studies ,– New classifications, – New methods and concepts and new price bases .

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