Pakistan’s Economic Survey for 2024–25 highlights measurable economic improvements, though key sectors like agriculture and manufacturing continue to face hurdles. Here’s a breakdown of the key findings:
Growth and Investment
- GDP Growth: Real GDP expanded by 2.68%, with industrial growth at 4.77% and services at 2.91%.
- Investment & Savings: The investment-to-GDP ratio rose to 13.8%, while savings increased to 14.1%.
- GDP Value: At current market prices, GDP reached Rs114.7 trillion, up 9.1% from last year.
Sectoral Performance
Agriculture
- Growth slowed to 0.56%, with its GDP share dipping to 23.54%.
- Key Crops Decline: Wheat (-8.9%), cotton (-30.7%), and sugarcane (-3.9%) suffered due to adverse weather.
- Livestock Strength: The sector grew by 4.72%, contributing 63.6% to agriculture GDP.
- Fisheries & Forestry: Both sectors saw modest growth at 1.42% and 3.03%, respectively.
Industry & Manufacturing
- Large-scale manufacturing (LSM) contracted, but small-scale manufacturing and auto production (+42%) offset losses.
- Mining: Coal production rose 12%, but mineral exports fell 9% due to global price drops.
Fiscal & Monetary Health
- Fiscal Deficit: Narrowed to 6.5% of GDP (from 7.4%).
- Revenue Growth: Tax collection surged 38%, pushing total revenue to Rs10.8 trillion.
- Inflation Control: Dropped sharply to 0.3% in April 2025, with average CPI inflation at 4.7% (vs. 26% last year).
- Interest Rates: The State Bank slashed rates by 450 bps to 17.5%.
External Sector & Remittances
- Current Account Surplus: Recorded at $1.2 billion (0.3% of GDP).
- Remittances: Grew 11% to $32 billion.
- Reserves: Foreign reserves hit $14.3 billion, covering 3.6 months of imports.
- Per Capita Income: Rose 9.7% to $1,824.
Human Development
- Health: Infant mortality declined to 52 per 1,000 live births, but health spending remained low at 1.4% of GDP.
- Education: Literacy improved to 62.8%, yet education spending stayed at 2.1% of GDP.
Technology & Infrastructure
- IT Boom: Exports surged 32% to $3.5 billion, with digital transactions up 89%.
- Transport: Road networks expanded to 284,772 km, and aviation traffic jumped 24%.
Energy & Debt Challenges
- Power Capacity: Increased to 46,605 MW, but costly capacity payments (Rs2.5–2.8 trillion/year) burden consumers.
- Public Debt: Slightly eased to 74.1% of GDP (Rs67.8 trillion).
Capital Markets Surge
- Stock Market: PSX capitalization soared 50% to Rs10.2 trillion, with the KSE-100 gaining 78,000 points.
- Corporate Bonds: Issuance rose 38% to Rs480 billion.
Outlook & Concerns
Finance Minister Muhammad Aurangzeb acknowledged progress but stressed the need for higher investment in human development. The upcoming budget will be closely watched for health and education allocations, as Pakistan balances growth with structural reforms.
