ISLAMABAD: Pakistan’s economy grew by 2.7% in 2024–25, falling short of its growth target, according to the Economic Survey released Monday. However, the country saw a sharp rise in remittances, controlled inflation at 4.6%, and major improvements in revenue and exports.
GDP Growth Below Target
Finance Minister Muhammad Aurangzeb presented the Economic Survey 2024–25 ahead of Tuesday’s federal budget announcement. The report reveals a modest GDP growth of 2.7% amid global economic challenges. However, Aurangzeb said Pakistan has begun recovering in line with international trends.
Inflation Down, Policy Rate Cut
Inflation was significantly reduced, averaging 4.6% for the fiscal year. The central bank’s policy rate was slashed from 22% to 11%, aimed at stimulating business activity. These measures, according to the finance minister, contributed to stabilizing key economic indicators.
Strong Remittance & Export Gains
Aurangzeb reported that overseas Pakistanis sent nearly $10 billion more over the past two years, helping shore up foreign reserves. Exports rose 7%, with the IT sector alone earning $2.8 billion. Freelancers contributed $400 million, reflecting growing digital potential.
Revenue Collection and Tax Filers Rise
The finance minister noted a 26% increase in revenue collection and said the number of individual tax filers doubled during the year. He credited government efforts to expand the tax net and reform collection mechanisms.
Current Account Surplus & Power Sector Recovery
Imports rose by 11.7%, yet Pakistan recorded a $1.9 billion current account surplus from July to April. Aurangzeb highlighted record recoveries in the power sector, attributing them to ongoing structural reforms.
