Pakistan’s economy is showing promising signs of sustainable growth, according to the Finance Ministry’s Monthly Economic Outlook Report for the first five months of the fiscal year 2024-25. Key economic indicators reflect positive trends:
- Inflation has dropped to 4.9% in November, with projections suggesting a further decline to 4-5% this month.
- The rupee has appreciated by Rs4.48 against the dollar, trading at Rs278.42 compared to Rs282.90 last year.
- Exports have increased by 7.4%, reaching $13.28 billion, while remittances surged 33.6% to $14.76 billion. Investment grew by 42.2%, amounting to $1.27 billion, and foreign exchange reserves rose by $4.6 billion to $11.85 billion.
Read more: US Assures Support for Pakistan’s Economic Stability
The large-scale manufacturing sector showed signs of recovery, growing by 0.02%. The auto sector experienced notable growth, with car production up by 25.2% and auto sales increasing by 24.8%. Additionally, cement production and sales also saw significant increases, and electric vehicle production reached a new milestone.
On the fiscal front, the Federal Board of Revenue (FBR) recorded a 23.2% growth in tax revenue collection, amounting to Rs4,295 billion. Despite some revenue shortfalls, the primary balance, fiscal deficit, and current account remained in surplus, demonstrating improved fiscal management.
In agriculture, loans rose by 8.5% to Rs925 billion, although low rainfall poses a risk to Rabi crops, particularly wheat.
With a 13% policy rate, the Ministry of Finance expects further acceleration in economic activities, reinforcing the optimism for continued growth.
