According to Ministry of Finance recent monthly economic update and forecast report, highlighted a number of encouraging developments in Pakistan’s economy.
According to the analysis, it is anticipated that the rate of inflation would shortly drop to a single digit. In July and August, respectively, it projects inflation rates of 12–13% and 11–12%. It is noteworthy that in May 2024, inflation was 11.8%, and in June 2024, it was 12.6%.
Moreover, with the International Monetary Fund (IMF) $7 billion agreement further anticipated to stabilize the economy, the ministry is hopeful about the stability of the national economy in 2024.
The current account deficit, inflation rate, and exchange rate stabilisation are highlighted in the report. From $3.3 billion, the current account deficit has shrunk to $700 million. Furthermore, tax income increased significantly, reaching Rs9,311 billion, a 30% rise.
With more than Rs1,972 billion in loans disbursed between July 2023 and May 2024—a 26% increase in credit over the previous fiscal year—the agricultural sector has demonstrated strong success.
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Additionally, the tractor sales have increased by 47% and output has increased by 43.5% to 45,529 units, indicating that the industrial sector is also gradually recovering.
In addition, remittances and exports have both grown, but the 11-month financial imbalance has stayed at 4.9%. It is anticipated that July’s imports will be calculated at $4.5 billion, while exports will likely fall between $2.4 and $2.7 billion.
The amount of foreign direct investment (FDI) increased by 16.9% to $1.9 billion in the previous fiscal year. According to the survey, Pakistan’s top investors are China, Hong Kong, and the United Kingdom.
Between February and March, loans of Rs83.68 billion were made available under the Prime Minister’s Scheme. In addition, a three-month subsidy is provided to power users who use up to 200 units. 43,356 Pakistanis found work overseas in June 2024, which helped the nation’s economy flourish.
