The economy is showing signs of stabilization, with inflation easing and the fiscal deficit narrowing, according to the finance ministry’s monthly economic report.
The country’s GDP is projected to grow at a ‘reasonable’ pace in the current fiscal year. This positive outlook is supported by a rebound in domestic economic activity, improved agriculture output, and a stable exchange rate.
The report highlights that the recovery observed in the large-scale manufacturing (LSM) sector is expected to continue throughout FY2025. This will be driven by a stable exchange rate, macroeconomic stability, and relaxed import restrictions.
Inflation is forecasted to range from 12-13 percent in July 2024 and 11-12 percent in August 2024. The report also notes that exports and imports are expected to increase, remaining within the ranges of $2.4-2.7 billion and $4.5-4.9 billion, respectively, in July 2024.
In summary, Pakistan’s economy has made strides towards stability in FY2024, marked by decreasing inflation, a surplus in the primary fiscal account (July-May), a negligible current account deficit, and a stable exchange rate.
