The federal government is set to unveil the National Economic Survey for the fiscal year 2024-25 tomorrow (Monday), offering a mixed bag of economic performance, with missed growth targets but notable gains in inflation control, remittances, and fiscal balance, reported 24NewsHD TV channel Sunday.
According to the key features of the document, Pakistan’s overall economic growth rate stood at 2.7%, falling short of the 3.6% target set for the year. The agriculture sector managed only 0.6% growth versus its 2% goal, and the services sector hit 2.9%, missing the 4.1% target. In contrast, industrial growth exceeded expectations, clocking in at 4.8%, ahead of the 4.4% target.
The report reveals that total investment was 13.8% of GDP against a target of 14.2%, while fixed investment stood at 12% (target: 12.5%) and private investment reached 9.1% versus the goal of 9.7%. On the brighter side, national savings hit 14.1%, surpassing the 13.3% target.
In a surprising win, the government successfully controlled inflation, which averaged just 5%, well below the 12% target. This marks a rare fiscal achievement amid turbulent economic conditions.
From July to March, total expenditure rose by 19.4%, but income surged by 36.7%, allowing for a 23.9% reduction in the budget deficit. Current expenditure increased by 18.3%, while development spending jumped 32.6%. The primary balance showed remarkable improvement, rising by 114.7%.
The external sector also delivered encouraging signs. Remittances soared by 30.9%, reaching $31.21 billion in the first 10 months. Exports grew by 6.8% to $27.27 billion, while imports rose by 11.8%, hitting $48.62 billion. However, foreign direct investment dipped by 2.8%, totalling $1.78 billion from July to April.
Despite the FDI decline, the current account remained in surplus, recording $1.88 billion during the same period. The State Bank’s foreign exchange reserves rose significantly, from $9.2 billion to $11.4 billion.
In terms of revenue collection, the FBR reported a 26.3% increase in tax revenues, while non-tax income surged by 69.9%, contributing to the government’s improved fiscal performance.
Reporter: Waqas Azeem