Pakistan Economic Survey 2024-25: Positive growth, inflation control, says Finance Minister

ISLAMABAD: Federal Finance Minister Senator Muhammad Aurangzeb officially unveiled Pakistan’s Economic Survey for the current fiscal year, highlighting a steady move toward economic stability.

Addressing the media, the finance minister stated that Pakistan’s GDP growth for the fiscal year stood at 2.7 per cent, while the country’s inflation rate has dropped significantly to 4.6 per cent.

He further noted that last year’s policy rate was 22 per cent, which has now been reduced to 11 per cent, reflecting the government’s efforts to ease monetary pressures.

Senator Aurangzeb asserted that Pakistan’s engagement with the IMF restored international confidence in the country’s economy.

He acknowledged Prime Minister Shehbaz Sharif’s role in securing the Stand-By Arrangement (SBA) with the IMF, praising the caretaker finance minister’s efforts in keeping the program on track.

Highlighting the government’s reform agenda, he stated that fundamental changes were essential to reshape the country’s economic DNA. Pakistan’s tax-to-GDP ratio has now reached its highest level in five years, thanks to significant reforms in the Federal Board of Revenue (FBR).

The finance minister acknowledged that meaningful economic transformation typically requires two to three years.

However, notable progress has been made, especially in the power sector, where record recoveries have been achieved, and governance within power distribution companies has markedly improved.

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Discussing the IMF program’s objectives, Aurangzeb said its primary goal was macroeconomic stability.

He pointed out that Pakistan has witnessed a recovery in GDP growth compared to global trends, adding that while global inflation was at 6.8 per cent two years ago and now stands at 0.3 per cent, Pakistan’s inflation rate has come down to 4.6 per cent.

He concluded by highlighting the significant growth in Pakistan’s foreign exchange reserves during the current fiscal year, reiterating that the country is now firmly on the path toward sustainable economic stability.