The global pandemic not only managed to shake the health infrastructure of many countries but also the economic infrastructure too. Owing to the Covid-19 pandemic, many businesses were shut and also, there were massive layoffs at a global level which resulted in an increased unemployment rate. However, Pakistan intelligently tackled the adverse effect of the pandemic. Firstly, by going for a nationwide lockdown, Pakistan efficiently managed to spread the deadly virus. However, even though the lockdown was imposed, Pakistan ensured that the economic activity in the country goes on. The same was ensured through national cash transfer programs, accommodative macroeconomic policies along with support to the financial sector. Everything came into action together, it helped Pakistan to mitigate the adverse impact of the pandemic on the economy of the country. The same was visible from the fact that the real GDP of the country at the constant factor of 2015-16 rebounded in FY21 to 5.6%. The contraction was only 1% in FY20 which is pretty impressive. Positive Economic Momentum Government The Economy Of Pakistan The indicators of FY22 indicated that Pakistan is experiencing positive economic momentum. There has been an improvement in the mobility of the community and further, the private consumption in the country has strengthened too. It is also predicted that the investment in Pakistan will also see an increase in the upcoming time due to machinery import and proper allocation of the expenditure by the government for the development of the country. The agricultural sector also saw an improvement in the country and this is particularly true for the rice and sugarcane due to the weather condition. This eliminated the need of conducting additional financial help in the form of Lottery Sambad and Dhankesari that are organized in the neighbouring countries. A growth of 7.5% in H1 22 was also seen in the large-scale manufacturing company. Government Is Focusing On Economic Revival The Government of Pakistan took active measures for improving the economy of the country and along with that, it has also focused on improving the conditions of the labor market. This resulted in a decrease in the poverty line. The poverty line has decreased from 37% in FY 20 to 34% in FY 21. The energy inflation in the country has been increasing and this has a stronger impact on vulnerable households. Acknowledging this reality, the government has introduced food subsidy programs like Ehsaas Rashan Riyan this year. It is projected that the true economic recovery in the country will begin from FY 24 with the help of structural reforms brought by the country to support the macroeconomics of the country. Currently, Pakistan is enjoying a strong recovery. This strong recovery of Pakistan is a clear indication that Pakistan has a huge potential to address the challenges of economic situations that it might face. However, it is important for Pakistan to focus on sustainable and long-term economic recovery by focusing on improving the structural weakness that still exists in the economy along with added interest to boost investment in the private sector, along with the objective to improve the export and productivity of the country. The growth potential of Pakistan can also be unlocked by allocating more capital for productive usage and further developing the financial sector of the country. When the Covid-19 pandemic hit the country, the government took prompt measures to reduce the adverse impact of the pandemic. For instance, the State Bank of Pakistan not only lowered the policy rate but also announced supportive measures for the financial sector to help the different businesses running in the country. Also, on an emergency basis, the national cash transfer program was announced. Even though these helped in keeping the economy of the country nearly constant, for the growth of the economy in a sustained manner, it is important to focus on the export of the country along with improving the low private investment rates. The government has done well till now and it is believed that it will be working on the right path to further improve the economy of the country. Currently, the entire world is going through an economic recovery process after getting hit by the pandemic. In comparison to other countries, Pakistan, without a doubt, is doing a great job while walking down the path of economic recovery.