Significant improvement in Pakistani economy, low inflation, current account surplus and increase in exports

Islamabad: The Ministry of Finance has released the monthly economic outlook report for the fiscal year 2024-25, in which several positive indicators of the economy have emerged. According to the report, the growth rate was recorded at 2.68 percent during the current fiscal year, while the inflation rate has reduced from 23.4 percent to only 4.5 percent after a significant decrease.

The most prominent aspect is the annual surplus of $2.1 billion in the current account, which has been achieved after 14 years. The fiscal deficit has also been limited to only 3.1 percent of GDP, which is a great example of fiscal discipline.

The performance of the agriculture sector was also excellent in the report, where loans increased by 16.6 percent and the total volume exceeded Rs 2300 billion. Similarly, imports of agricultural machinery also recorded a 20 percent increase. Improvement was also seen in the use of fertilizers, with urea consumption increasing by 3.4 percent and DAP by 20 percent.

The production of large industries also saw a positive trend and recorded an increase of 2.3 percent on an annual basis in May 2025. Talking about remittances, they saw a remarkable increase of 26.6 percent and total remittances increased from $30 billion to more than $38 billion.

Exports increased by 4.2 percent and imports by 11.1 percent, while the country’s total reserves reached $19.9 billion. FBR revenues increased by 26.3 percent during the 11 months, while non-tax revenues recorded an increase of 62.7 percent. The fiscal deficit also narrowed to 18.34 percent.

The increase in credit provision to agriculture and the private sector and the depreciation of the rupee by only Rs 5 are a reflection of improved economic management.