Pakistan’s economy is exhibiting strong growth, with a 2.5 percent GDP expansion in the first half of the fiscal year 2024-25, reflecting a positive trajectory, according to the finance ministry.
In its report released on Monday, the ministry highlighted that the economy’s upward momentum is being driven by effective macroeconomic management, inflation control measures, and improved fiscal and external account stability.
Thanks to easing global prices, inflation significantly dropped to 7.2 percent in H1-FY2025, down from 28.8 percent in 2023-24. This decline was supported by a stable exchange rate and targeted government policies, the report stated.
Sustainable economic growth has been further bolstered by policy reforms, monetary easing, and fiscal consolidation, as outlined in the Economy Half-Yearly Report.
The report also noted that the agricultural sector grew by 6.2 percent in FY2024, supported by higher investment, increased agricultural credit, and favorable weather conditions. High-frequency indicators suggest a positive outlook for future growth.
Economic signals, including machinery imports, investment levels, and water availability, point toward continued growth for the national economy. The industrial sector showed mixed results, with the textile industry showing signs of improvement.
With domestic recovery and increased trade, the services sector is expected to maintain its positive trend, while the current account balance recorded a surplus of $1.21 billion in Jul-Dec FY2025.
The finance ministry also reported that Foreign Direct Investment (FDI) surged by 20 percent, largely driven by investments in the power and oil sectors. Foreign exchange reserves are sufficient to cover over two months of imports, supported by IMF disbursements and international financial assistance.
The Pakistani rupee strengthened by 1.2 percent, reflecting favorable external developments. The government has successfully reduced the fiscal deficit to 0.04 percent of GDP in Jul-Nov FY2025, a significant improvement from the previous year’s deficit.
According to the finance ministry, with strengthened economic fundamentals, lower inflation, and growing investor confidence, Pakistan is on track for continued growth throughout the fiscal year.
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