ISLAMABAD, May 29 (APP): The economy of the country performed well during the month of May 2025 as demonstrated by various economic indicators, pointed out monthly economic update and outlook for May.
Pakistan’s economy has been upgraded by Fitch Ratings, acknowledging macroeconomic stabilization in the outgoing fiscal year, supported by improved fiscal performance, current account surplus, and easing inflation.
According to the report, the revenue growth outpaced expenditure, reducing the fiscal deficit and further strengthening the primary surplus. The current account posted a $1.9 , billion surplus, with a robust growth in exports and remittances. Inflation declined to a record low, paving the way for a more accommodative monetary policy stance.
The consumer price index (CPI) inflation dropped to 0.3 percent YoY in April 2025, down from 0.7 percent in March and 17.3 percent in April 2024. MoM, it declined by 0.8 percent, following a 0.9 percent increase in March and a -0.4 percent decline in April 2024.
During Jul-Mar FY2025, total revenue grew by 36.7 percent to Rs. 13,367.0 billion, compared to Rs. 9,780.4 billion last year, led by a 68 percent rise in non-tax revenues which reached Rs. 4,229.7 billion, mainly driven by State Bank of Pakistan (SBP) profits, petroleum levy, dividends, and surcharges.
The Federal Board of Revenue (FBR) tax collection also increased by 26.3 percent to Rs. 9,300.2 billion during Jul-Apr FY2025, up from Rs. 7,361.9 billion last year.
Meanwhile, the external accounts further improved during Jul-Apr FY2025, supported by rising remittances and export growth, despite higher imports. The current account posted a $1.9 billion surplus, reversing a deficit of $1.3 billion last year.
The Monetary Policy Committee (MPC), on May 5, 2025, reduced the policy rate by 100 basis points to 11 percent, observing a persistent decline in inflation.
The LSM sector showed a mixed performance in March 2025. It registered year-on-year (YoY) growth of 1.8 percent; however, this was offset by a month-on-month (MoM) contraction of 4.6 percent.