The Government of Pakistan recently released the much-anticipated Economic Survey 2024, which offers a comprehensive review of the country’s economic performance during the past fiscal year.
Alongside this, the federal government unveiled the Budget 2025, outlining fiscal policies and allocations aimed at sustaining growth and addressing emerging economic challenges.
The survey reflects Pakistan’s cautious recovery amid persistent global and domestic headwinds, including inflation, energy shortages, and geopolitical uncertainties. Despite these challenges, key sectors such as agriculture, industry, and services showed resilience, providing a foundation for continued economic growth.
Highlights from the Economic Survey 2024
Agriculture, a critical sector, demonstrated moderate growth with improved yields in crops like wheat and rice. Livestock and fisheries also contributed positively, supporting rural economies and export revenues.
Industrial production showed a mixed trend. In comparison, energy constraints and rising input costs posed challenges, but sectors like textiles and cement registered growth due to increased domestic demand and export incentives.
The IT and telecommunications sector continued to expand rapidly, highlighting Pakistan’s potential as a regional digital hub, with increased foreign investment and export earnings.
Inflation, especially food inflation, remained a significant concern, impacting consumer purchasing power. The government aims to stabilize prices through targeted subsidies and supply chain improvements.
Fiscal management remains critical, with tax reforms improving revenue collection, but the budget deficit and public debt still present challenges.
Budget 2025: Focus on Growth and Stability
The Budget 2025 sets ambitious targets to sustain economic momentum and address fiscal imbalances. The federal budget proposes increased allocations for infrastructure development, social welfare programs, and education, aiming to boost human capital and inclusive growth.
Key highlights include:
- Enhanced investment in energy sector reforms to reduce circular debt and improve power supply efficiency.
- Expansion of industrial incentives to promote export diversification and local manufacturing.
- Strengthening social safety nets to cushion vulnerable populations against inflationary pressures.
- Continued focus on digital economy initiatives to capitalize on the growth of IT and telecommunications.
Finance Minister Mr. Muhammad Aurangzeb emphasized the need for fiscal discipline, pledging to improve tax compliance and broaden the tax base to reduce reliance on borrowing.
The budget also outlines measures to enhance the ease of doing business, aiming to attract foreign direct investment and spur private sector growth.
Trade and External Sector Outlook
Pakistan faces a widening current account deficit, driven by high import bills and subdued exports. The government plans to mitigate this through import substitution policies and promoting exports in high-potential sectors.
As Pakistan moves forward, the insights from the Economic Survey 2024, combined with the fiscal strategies in Budget 2025, provide a roadmap for achieving sustainable economic growth, enhanced stability, and social development.
