Finance Minister Unveils Key Economic Gains Ahead of Federal Budget, Highlights Record Remittances and IT Export Surge
Key Takeaways:
1. GDP Growth & Inflation: Pakistan’s GDP grew by 2.7% with inflation controlled at 4.6%, signaling gradual economic recovery.
2. Export & IT Sector Gains: Exports rose by 7%, and IT exports hit $3.1 billion, reflecting the sector’s rising contribution.
3. Strong Remittances: Overseas Pakistanis sent home $38 billion, bolstering foreign exchange reserves and economic stability.
Islamabad, Pakistan – Pakistan’s economy posted a 2.7% GDP growth and contained inflation at 4.6% during the outgoing fiscal year, according to the Pakistan Economic Survey 2024-25 presented by Federal Finance Minister Muhammad Aurangzeb on Monday. The annual survey, released just a day before the federal budget, offers a comprehensive snapshot of the country’s socio-economic performance and sets the stage for policy planning in the upcoming year.
The survey reveals a cautiously optimistic outlook for Pakistan’s economy. Key highlights include a significant drop in the policy rate from 22% to 11%, a move seen as encouraging for business activity and investment. The power sector saw record recoveries, attributed to ongoing reforms aimed at reducing losses and improving efficiency.
Exports rose by 7%, reflecting resilience in key sectors, while the country’s burgeoning IT industry continued its upward trajectory. Pakistani freelancers earned approximately $400 million, and IT exports reached $3.1 billion, underscoring the sector’s growing importance in the national economy.
Imports increased by 11.7%, but this was offset by a current account surplus of $1.9 billion and a robust 26% increase in revenue collection. Remittances remained a vital pillar, with overseas Pakistanis sending home $38 billion, providing much-needed foreign exchange and supporting domestic consumption.
The survey also covers critical areas such as public debt, population growth, employment, and the impacts of climate change, offering policymakers and the public a consolidated view of the nation’s economic health.
As the government prepares to table the new federal budget, these indicators will play a crucial role in shaping fiscal priorities and economic reforms for the year ahead.
