In its most recent monthly economic update and outlook report, the Ministry of Finance has highlighted a number of encouraging developments in Pakistan’s economy.
According to the analysis, it is anticipated that the rate of inflation would shortly drop to a single digit. In July and August, respectively, it projects inflation rates of 12–13% and 11–12%. It is noteworthy that in May 2024, inflation was 11.8%, and in June 2024, it was 12.6%.
Thanks in part to a $7 billion agreement with the International Monetary Fund (IMF), which is anticipated to further stabilize the economy, the ministry is hopeful about the stability of the national economy in 2024.
The current account deficit, inflation rate, and exchange rate stabilization are highlighted in the report. From $3.3 billion, the current account deficit has shrunk to $700 million.From $3.3 billion, the current account deficit has shrunk to $700 million. Furthermore, tax income increased significantly, reaching Rs9,311 billion, a 30% rise.
With more than Rs1,972 billion in loans disbursed between July 2023 and May 2024—a 26% increase in credit over the previous fiscal year—the agricultural sector has demonstrated strong success. Tractor sales have increased by 47% and output has increased by 43.5% to 45,529 units, indicating that the industrial sector is also gradually recovering.
