ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb, presenting the Pakistan Economic Survey 2024–25 on Monday, announced that the country’s Gross Domestic Product (GDP) grew by 2.7%, while inflation stood at 4.6% during the outgoing fiscal year.
The annual survey, unveiled ahead of the federal budget announcement scheduled for Tuesday, offers a comprehensive analysis of Pakistan’s socio-economic performance. It outlines key fiscal indicators, including GDP growth, tax revenue, industrial output, public debt, trade performance, employment levels, population trends, and climate change impacts.
Aurangzeb emphasized the significant drop in the policy rate, which fell from 22% to 11%, crediting recent power sector reforms for record recoveries. He also highlighted a 7% increase in exports, underscoring Pakistan’s rising Information Technology (IT) potential, with freelancers earning $400 million and IT exports reaching $2.8 billion.
On the external front, imports rose by 11.7%, yet the current account posted a $1.9 billion surplus (July–April), bolstered by a 26% increase in revenue collection. Aurangzeb noted that remittances surged by $10 billion over the past two years, strengthening the country’s foreign exchange position.
Despite global inflation averaging 6.8% over the past two years and now at 0.3%, Pakistan’s foreign exchange reserves improved markedly this year, indicating growing economic stability.
The finance minister projected a medium-term GDP growth rate of 5.7%, affirming that the country is on a positive economic trajectory. He praised the caretaker government for maintaining alignment with the International Monetary Fund (IMF) programme, and reiterated the need for continued structural reforms, particularly within the Federal Board of Revenue (FBR).
“Economic transformation takes time—typically two to three years,” Aurangzeb stated. “We’re moving in the right direction, and now we must focus on sustaining GDP stability.”
