Pakistan’s Economy Shows Positive Growth in FY 2024-25, Key Indicators Improve
Manufacturing, Auto, and Cement Sectors Show Strong Recovery; Agriculture Faces Risks
ISLAMABAD: Pakistan’s economy is on a sustainable growth path, with key indicators showing positive trends in the first five months of the fiscal year 2024-25, according to the Finance Ministry’s Monthly Economic Outlook Report.
Inflation has significantly declined to 4.9% in November, with projections to fall further in December. The rupee has appreciated by Rs4.48, stabilizing at Rs278.42. Exports rose 7.4% to $13.28 billion, remittances surged 33.6% to $14.76 billion, and investment increased by 42.2%, reaching $1.27 billion. Foreign exchange reserves grew by $4.6 billion to $11.85 billion.
The manufacturing sector showed signs of recovery, especially in the auto and cement industries. Car production surged by 25.2%, while cement production and sales also saw significant increases. The agriculture sector saw an 8.5% rise in loans, though low rainfall poses a risk to Rabi crops.
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Tax revenue grew by 23.2%, and fiscal management improvements resulted in a surplus in the primary balance, fiscal deficit, and current account. The Ministry of Finance expects further economic acceleration, aided by a 13% policy rate.
