Economic recovery continues, says Ministry of Finance report

The Ministry of Finance has released its monthly economic report, which shows that the country's economy is gradually recovering from the impact of the pandemic, reported 24NewsHD TV channel Wednesday.

The report highlights the positive performance of various sectors, such as agriculture, stock market, foreign investment, remittances and exports. The report also acknowledges the challenges of high inflation, interest payments and spending.

According to the report, the Pakistan Stock Exchange was the best-performing market in the region in November, with a 10.4% increase in the benchmark index.

The report also shows that the agricultural sector has achieved its production targets for the rabi season, with a 2% increase in the wheat area in Punjab. The report says that foreign investment has increased by 8.1% from July to November, reaching $1.2 billion. Remittances also rose by 3.6% on an annual basis in November, reaching $2.3 billion.

The report reveals that spending rose by 35% from July to October, reaching Rs 2.8 trillion. During this period, ongoing expenses increased by 44%, mainly due to a 63% increase in interest payments. The report says that inflation is expected to remain at 28.5% in December and decline to 25% in January 2024.

The report also forecasts that exports will exceed $3 billion per month from August 2023 onwards. The report says that exports increased by 5% from July to November, while imports fell by 16%. As a result, the current account deficit decreased by 64.5%, and the budget deficit decreased by 31.9%.

Reporter: Waqas Azeem