Pakistan’s Ministry of Finance has published its monthly economic outlook report, highlighting notable improvements across various economic indicators. The report emphasizes that inflation has reached its lowest level in 3.5 years.
Among the key improvements mentioned are substantial increases in remittances, exports, and foreign investment. The report notes a stable recovery of the national economy during the first quarter, with September’s inflation dropping to 6.9 percent, its lowest level in 44 months. This positive trend is attributed to several factors: the receipt of a $1.03 billion tranche from the IMF, enhanced business and market confidence following the SCO conference, and ongoing efforts towards sustainable economic recovery.
Remittances surged by 38.8 percent, totaling $8.78 billion, providing a vital boost to the national economy. Exports also experienced growth, increasing by 7.8 percent to reach $7.49 billion, reflecting heightened international demand for Pakistani goods and services.
Foreign investment saw a significant rise of 70.4 percent, exceeding $900 million, while Foreign Direct Investment (FDI) specifically grew by 48 percent to reach $770 million, demonstrating increasing confidence in Pakistan’s investment climate.
The State Bank of Pakistan (SBP) reported a substantial increase in foreign exchange reserves, rising from $7.61 billion to over $11 billion, enhancing Pakistan’s economic stability and resilience.
The stock market showed remarkable growth, with a 78.4 percent increase, surpassing 90,000 points, signaling investor optimism regarding the country’s economic future. The exchange rate also improved, with the dollar decreasing from Rs280.29 to Rs277.62 over the past year, indicating enhanced currency stability.
Tax revenue from July to September rose by 25.5 percent, reaching Rs2,563 billion, reflecting better tax collection efficiency and compliance. Non-tax revenue also increased, climbing by 20.8 percent to Rs341 billion, contributing further to the overall improvement in government revenue.
While the report highlights these positive trends, it acknowledges a 4.3 percent rise in the fiscal deficit during the first two months of the fiscal year, exceeding Rs841 billion. Nevertheless, it also reports a remarkable 92 percent decrease in the current account deficit, reducing it to $98 million, marking a significant positive development.
