GDP growth is returning to normal.
“Inflation continues its steady decline, while GDP growth is on the recovery path,” the study said. The positive primary balance indicates fiscal consolidation measures, and the positive current account balance demonstrates the external sector’s resiliency.
Program of the IMF.
The administration finished the IMF Stand-By Arrangement (SBA) program satisfactorily, despite the difficult circumstances over the previous ten months.
The administration has started formal negotiations for a new three-year IMF program in order to maintain the economic recovery.
This program, which aims to boost investment flows and strengthen the external sector in order to steer the economy toward its potential growth, is an essential part of the stabilization plan.
With a 6.25 percent growth rate in the current fiscal year, agriculture emerged as the primary engine of economic growth.
Government actions, such as greater credit disbursement to farmers and improved input supply, are primarily responsible for the agriculture sector’s resurgence.
The input situation was positive in July and April of FY-2024, with increases in farm tractor sales and production of 54.8 and 56.6 percent, respectively.
Disbursements of agricultural credit increased.
From July through March of FY2024, there was a 33.8 percent increase in the disbursement of agricultural loans. However, there was a mixed pattern in the use of fertilizers in April 2024, with DAP offtake rising and urea offtake falling by 19.7 percent.
