Pakistan Economic Survey 2024-25: 2.8% GDP Growth, 4.6% Inflation Recorded

Islamabad: Finance Minister Muhammad Aurangzeb disclosed that the current inflation rate of Pakistan is 4.6%, while global GDP growth stands at 2.8%.

During a press conference, the finance minister unveiled the most anticipated Pakistan Economic Survey for the fiscal year 2024–25, accompanied by Finance Secretary Imdadullah Bosal, Chief Economist Dr Imtiaz Ahmed, and other key members of the economic team. Dr Ahmed presented the survey document to the minister.

Aurangzeb stated that economic indicators have improved under the leadership of Prime Minister Shehbaz Sharif, with GDP growth signaling economic progress and inflation showing a notable decline. He emphasized that the country is “moving in the right direction.”

The finance minister announced a major reduction in the policy rate from 22% to 11%, and an improvement in the debt-to-GDP ratio, which declined from 68% to 65%. He noted that Pakistan’s economic recovery, which began in 2024, has continued into 2025, despite global economic slowdowns.

“Our economic recovery should be seen in light of the global landscape,” he remarked, highlighting governance reforms, including the appointment of professional boards in DISCOs and the restructuring of NTDC into three separate companies.

Aurangzeb acknowledged ongoing challenges in the energy sector, citing efforts to address legacy issues and leakages. He pointed out that state-owned enterprises (SOEs) remain problematic, with losses reaching Rs800 billion.

On the external front, Aurangzeb noted that Fitch upgraded Pakistan’s credit rating and Moody’s turned its outlook positive. He confirmed that Pakistan received the latest IMF tranche based on merit, despite opposition, and that the IMF approved climate financing for the country.

The minister highlighted that international institutions and friendly nations are supporting Pakistan. He expressed confidence in the Special Investment Facilitation Council (SIFC), calling it a “game-changer,” and mentioned that Rs30 billion had been raised through Sukuk bonds.

He stressed the importance of domestic resource mobilization and announced that projects addressing climate change would begin next year. Government intervention in key crops such as rice and maize has ended, and agricultural lending has surpassed Rs2 trillion.

The finance minister stated that Sukuk and long-term loan maturities had been extended, with a target to reduce the debt-to-GDP ratio further below 65%. He also confirmed that the Debt Management Office is being strengthened, and that income tax filers now exceed 3.7 million, including a 178% increase in high-value filers.

Aurangzeb said the external sector faced twin deficits, but the current account showed a $1.9 billion surplus. Remittances are projected to reach $38 billion by June, while Roshan Digital Accounts have crossed 800,000.

Tax revenues rose 26% between July and May. He also mentioned the implementation of contributory pension reforms and said that a rightsizing initiative involving 43 ministries and over 400 departments is underway, with details to be revealed in the upcoming budget. Some departments have already been merged or dissolved.

He affirmed that Pakistan’s foreign exchange reserves have improved and reiterated that the IMF programme aims to ensure macroeconomic stability. “The economy is now moving in the right direction. Structural reforms are essential for long-term improvement,” he said.

Aurangzeb highlighted the increasing use of technology in tax reforms and reported positive progress. He said the energy sector had seen major recovery within a year and governance had improved, with expected reductions in losses.

In conclusion, the finance minister praised the Pakistan Armed Forces for their “befitting response” to India, claiming that India’s executive director attempted to block the IMF meeting and hinder the agenda for the next tranche.

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