Pakistan - Gross capital formation (% of GDP)

Gross capital formation (% of GDP) in Pakistan was 15.33 as of 2020. Its highest value over the past 60 years was 22.72 in 1965, while its lowest value was 12.81 in 1973.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.

Source: World Bank national accounts data, and OECD National Accounts data files.

See also:

Year Value
1960 13.53
1961 14.13
1962 15.53
1963 18.41
1964 21.01
1965 22.72
1966 18.88
1967 18.97
1968 16.06
1969 15.15
1970 15.79
1971 15.54
1972 14.02
1973 12.81
1974 13.18
1975 16.39
1976 17.47
1977 18.31
1978 16.99
1979 17.11
1980 17.67
1981 18.77
1982 19.26
1983 18.79
1984 18.27
1985 18.33
1986 18.76
1987 19.13
1988 18.01
1989 18.91
1990 18.94
1991 18.90
1992 20.13
1993 20.69
1994 19.40
1995 18.55
1996 19.00
1997 17.92
1998 17.71
1999 15.56
2000 17.58
2001 17.40
2002 16.12
2003 16.67
2004 16.43
2005 17.72
2006 19.33
2007 18.79
2008 19.21
2009 17.55
2010 15.80
2011 14.12
2012 15.08
2013 14.96
2014 14.64
2015 15.71
2016 15.69
2017 16.15
2018 17.34
2019 15.63
2020 15.33

Limitations and Exceptions: Because policymakers have tended to focus on fostering the growth of output, and because data on production are easier to collect than data on spending, many countries generate their primary estimate of GDP using the production approach. Moreover, many countries do not estimate all the components of national expenditures but instead derive some of the main aggregates indirectly using GDP (based on the production approach) as the control total. Data on capital formation may be estimated from direct surveys of enterprises and administrative records or based on the commodity flow method using data from production, trade, and construction activities. The quality of data on government fixed capital formation depends on the quality of government accounting systems (which tend to be weak in developing countries). Measures of fixed capital formation by households and corporations - particularly capital outlays by small, unincorporated enterprises - are usually unreliable. Estimates of changes in inventories are rarely complete but usually include the most important activities or commodities. In some countries these estimates are derived as a composite residual along with household final consumption expenditure. According to national accounts conventions, adjustments should be made for appreciation of the value of inventory holdings due to price changes, but this is not always done. In highly inflationary economies this element can be substantial.

Statistical Concept and Methodology: Gross domestic product (GDP) from the expenditure side is made up of household final consumption expenditure, general government final consumption expenditure, gross capital formation (private and public investment in fixed assets, changes in inventories, and net acquisitions of valuables), and net exports (exports minus imports) of goods and services. Such expenditures are recorded in purchaser prices and include net taxes on products.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts