ISLAMABAD – Finance Minister Muhammad Aurangzeb has said that Pakistan is heading in the right direction and has successfully brought inflation under control, as he presented the Economic Survey 2024-25 on Sunday.
While addressing a press conference in Islamabad, Aurangzeb said global GDP growth has slowed to 2.8%, but Pakistan recorded an increase in its own economic output. He noted that the country’s GDP grew by 2.7% in 2025 after a 2.5% increase in 2024 and a contraction in 2023. Inflation, which once soared above 29%, has now dropped to 4.6%.
The finance minister highlighted that inflation control was achieved through a detailed strategy. The central bank gradually reduced the policy rate from 22% to 11% over the past year. He also said that economic recovery has been steady and is now supported by growing foreign exchange reserves, improved investor confidence, and key structural reforms.
He noted that external reserves rose by $5 billion during the year, reaching $16 billion by June 2024. Pakistan’s debt-to-GDP ratio decreased from 68% to 65%. Credit rating agencies like Moody’s and Fitch improved Pakistan’s economic outlook, reflecting growing international confidence in the country’s economic management.
Aurangzeb added that tax collection increased by 26% between July and May, with the number of tax filers doubling and 74% more retailers registering. The finance ministry also saved Rs800 billion through debt restructuring and made significant progress in pension reforms. Industrial growth reached 6%, and service sectors saw more than 2% growth, while agriculture remained weak with just 0.6% growth.
He concluded by saying the government aims to continue downsizing federal ministries and departments for greater efficiency. The size of the economy grew to $411 billion, with per capita income rising to $1,824. Exports also climbed by 6.8%, while stock market growth surged by 52.6% thanks to improved investor sentiment. The current account, once in deficit, has now posted a surplus — a first in 20 years.
Key Economic Survey Takeaways:
- GDP growth reached 2.7% vs. a target of 3.6%.
- Inflation fell from over 29% to 4.6%.
- Industrial growth hit 4.8%, but agriculture lagged at 0.6%.
- Remittances projected to reach $37–38 billion.
- FBR tax revenue increased to Rs10.2 trillion.
- Foreign exchange reserves grew by $5 billion to $16 billion.