ISLAMABAD – June 9, 2025:
The Government of Pakistan has released the Pakistan Economic Survey 2024-25, showcasing improved fiscal discipline, macroeconomic stabilization, and early signs of recovery across key sectors. Despite global headwinds and domestic challenges, the country is now firmly on a path toward sustainable economic development.
📊 Economic Growth: Signs of Recovery
Pakistan recorded a GDP growth rate of 2.7%, narrowly missing the 3.6% target but still reflecting improvement from last year’s 2.5%.
Sector-Wise Performance:
- Industrial Sector: +4.8%
- Services Sector: +2.9%
- Agriculture Sector: +0.56%
While the services and industrial sectors gained momentum, agriculture remained sluggish due to erratic weather patterns and input shortages.
💰 Fiscal Consolidation: Revenue Surges, Deficit Controlled
The federal government achieved a historic primary surplus of 3.0% of GDP during July–March FY25.
- Total Revenue: Rs 13.37 trillion (↑36% YoY)
- Fiscal Deficit: Contained at 2.6% of GDP
- Non-Tax Revenues: Surged due to dividends from SOEs and petroleum levies
Finance Minister Muhammad Aurangzeb termed it a “turning point” in Pakistan’s fiscal history.
📉 Inflation Control and Monetary Easing
Pakistan witnessed one of the sharpest disinflationary phases in its recent history.
- CPI Inflation: Down to 4.6% (from ~29% last year)
- Interest Rates: Reduced from 22% to 11% by the State Bank of Pakistan
This has lowered the cost of borrowing and encouraged private sector growth.
🌐 External Sector: From Deficit to Surplus
The current account balance turned positive for the first time in years:
- Current Account Surplus: US$1.9 billion
- Worker Remittances: US$31.2 billion (↑31%)
- Foreign Reserves: US$16.6 billion (as of May 2025)
Export diversification and curbed non-essential imports contributed to this turnaround.
📈 Investments & Market Optimism
- Investment-to-GDP Ratio: Rose to 13.8%
- Private Investment: Increased by 9.9%
- KSE-100 Index: Delivered 50% returns, reflecting strong investor confidence
The capital market’s rally signals optimism about Pakistan’s economic direction.
🛠️ Structural Reforms & Forward Strategy
The government is executing structural reforms to ensure medium-term stability:
- Tax base expansion & FBR automation
- Privatisation of 24 state-owned enterprises
- Energy sector reform & subsidy rationalization
- Focus on digital governance and transparency
🔮 Growth Target:
The government projects a 5.7% GDP growth in the coming years, contingent on global stability and internal policy continuity.
✅ Conclusion: Cautious but Credible Progress
The Pakistan Economic Survey 2024-25 outlines a story of resilience and reform. With inflation at historic lows, fiscal consolidation achieved, and reserves growing, the country is transitioning from a crisis phase toward stability and long-term economic growth.
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