ISLAMABAD, May 24: Reduction in major crops’ output and lower than expected industrial performance overshadowed Pakistan’s modest 6.6 per cent gross domestic product (GDP) growth rate during the current year, below the target of seven per cent.

Services sector, with its impressive 8.8 per cent growth, lifted the otherwise faltering economy on the back of massive profits of the banking industry that offered nothing to depositors but earned billions of rupees in interest on depositors’ money. Last year, the GDP had grown by 8.4 per cent.

Official data showed that financial and insurance sectors recorded a monumental 23 per cent growth rate against the year’s target of just 6.7 per cent. The services sector’s performance was the best since 2003-04.

Next year’s targeted growth in GDP and other macroeconomic indicators was finalised at a meeting of the National Accounts Committee, attended by federal and provincial government officials here on Wednesday, sources in the finance ministry told Dawn.

The agriculture sector, with a GDP share of about 23 per cent, grew by a nominal 2.5 per cent against a target of 4.8 per cent for the current year and against 7.5 per cent agricultural growth achieved last year.

Major crops’ output posted a reduction of 2.3 per cent against a target of 6.6 per cent growth fixed for the current year and against 17.5 per cent growth achieved last year.

The depressing performance of industrial sector, with a GDP share of about 18 per cent, was broad-based during the current year.

The industrial sector grew by six per cent during the current fiscal year against a target of 9.5 per cent and last year’s actual growth rate of 10.2 per cent.

The overall manufacturing sector grew by a lowly 8.6 per cent during the current year and much lower than targeted 11 per cent perhaps because of capacity constraints. Last year, the large-scale manufacturing (LSM) had posted a growth of 12.5 per cent.

The LSM posted a growth of just nine per cent during the current year against a target of 13 per cent and last year’s growth of 15.4.

Small-scale and household manufacturing sector grew by an impressive 9.3 per cent in 2006-07 against a target of 7.4 per cent for the year. The performance of the sector was better than last year’s 7.3 per cent.

The construction sector also posted a higher growth rate of 9.2 per cent during the current year against a target of 7.5 per cent and last year’s growth of 6.2 per cent.

The services sector, with a GDP share of 52 per cent, has registered a broad-based growth of 8.8 per cent during the current year, against a target of 6.8 per cent and last year’s increase of 7.9 per cent. Earthquake rehabilitation activities also contributed to the sector’s growth.

The transport and communication sector grew by 7.2 per cent against a target of 5.8 per cent and last year’s growth of 5.6 per cent.

Similarly, the wholesale and retail trade posted a growth of 10 per cent during the year against a budgeted target of 9.3 per cent but lower than last year’s growth of 12 per cent.