The Ministry of Finance has issued its latest monthly economic update, highlighting notable improvements in Pakistan’s economic conditions.
The report reveals that inflation in July 2024 fell to 11.1%, its lowest in 32 months, down from 28.3% in the same month last year. This decrease is attributed to the government’s successful economic policies aimed at stabilizing the economy and alleviating consumer pressure.
Additionally, the report notes several positive trends in other economic indicators. Remittances surged by 47% in July, reaching $3 billion, which positively impacts the balance of payments and overall economic stability. Exports grew by 12.9%, totaling $2.4 billion, while imports increased by 16.3% to $4.8 billion, reflecting strong trade activity that supports economic growth.
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Tax revenue saw a 22.7% increase, reaching Rs. 660 billion, and non-tax revenue rose by 78.3% to Rs. 3,050 billion annually. These revenue gains are expected to enhance fiscal discipline and reduce dependency on external borrowing.
The current account deficit fell dramatically by 78% to $200 million, indicating improved external economic health. Foreign investment also climbed by 64%, totaling $136.3 million, with overall foreign investment reaching $189.1 million, signaling increased investor confidence.
The Pakistani rupee remained stable, with an exchange rate of Rs. 278.51 in August 2024 compared to Rs. 299.64 a year earlier, helping to maintain consumer purchasing power and control inflation. Additionally, the interest rate was reduced from 22% to 19.50%, which is anticipated to boost economic activity by lowering borrowing costs for businesses and consumers.
