Salient features of social accounting matrix of Pakistan for 1989-90: Disaggregation of the households sector

This report compiles a latest social accounting matrix (SAM) of Pakistan for the year 1989-90. The SAM framework provides useful information about the structure of Pakistan’s economy. Within this framework, the preferred classifications of various accounts are undertaken according to the policy objectives and later model building. The SAM presents four types of accounts: factor account, institution account, production account, and capital account. Theses accounts are disaggregated on the basis of requirement and availability of data. The account of factors of production is disaggregated into labour and capital. Institution accounts consist of households, firms, government, and rest of the world. Household account is further disaggregated by four income categories for rural and urban areas. Production account is disaggregated into agriculture, industry, education, health and other sectors. Further disaggregation of production account is also made on the basis of goods for domestic market and for export market. Finally, it presents consolidated capital account. This study also aims to undertake a multiplier analysis, which provides backward and forward linkages in production, consumption, distribution, and accumulation accounts of the economy. The multipliers for all endogenous accounts imply a high degree of integration of the accounts. For the production sectors, backward linkages are strongest for the education, followed by agriculture, health, other sector and industry. The largest forward linkage multipliers are found for industry, followed by other sectors, agriculture, health and education. Regarding the households income groups, the largest backward linkage is found for the urban poorest and smallest for the rural rich. While, the largest forward linkage is for the rural poorest and smallest for the urban poorest.