- Advertisement -
ISLAMABAD, Jun 9 (APP):The Gross Domestic Product (GDP) was recorded at 2.68 percent during the fiscal year 2024-25, according to Pakistan Economic Survey (2024-25) launched here by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
The key sectors that contributed in growth included agriculture that grew by 0.56 percent, while industries grew by 4.77 percent and services sector grew by 2.91 pervent.
According to the survey, the country’s economy has been widely recognized as a notable macroeconomic success among emerging markets. It has demonstrated overall stabilization and is rebuilding confidence, amidst a challenging global environment and regional geopolitical risks.
Improvements have been observed across all major macroeconomic indicators: inflation has declined from double digits to a single digit, the current account deficit has shifted to a surplus, the fiscal deficit has narrowed, the primary balance has further strengthened, and the Pakistan Stock Exchange maintains a bullish trend.
This improvement in key macroeconomic indicators has fostered overall stability, positioning the economy to enter the take-off stage in the medium term. On the account of these developments, the real GDP growth is recorded at 2.68 percent in FY 2025.
The survey reports that global economic slowdown continues amid high trade barriers, protectionism, market volatility, and declining trade and investment flows. While inflation is easing, energy shocks and demographic trends weigh on medium-term prospects. Uncertainty in major economies like the US, China, and UK poses risks to Pakistan’s exports and investment outlook.
Inflation in Pakistan dropped to a record low of 0.3% in April 2025, averaging 4.7% during July–April FY2025—down from 26.0% last year. This decline was driven by tight monetary policy, exchange rate stability, anti-smuggling measures, and targeted relief through Utility Stores, Sasta Bazaars, and BISP.
According to the survey, in FY2025, national savings reached 14.1% of GDP, exceeding the investment-to-GDP ratio of 13.8%, leading to a 0.4% foreign savings surplus. Private investment grew by 9.9% and public investment by 34.2%, indicating strong resource mobilization and positive growth outlook.
In FY2025, the external account showed resilience with a current account surplus of $1.9 billion (July–April), reversing last year’s $1.3 billion deficit, supported by higher remittances and steady export growth despite rising imports.
In Jul–Mar FY2025, revenue growth outpaced expenditures, driven by stronger tax collection (+26.3%) and a 68% surge in non-tax revenues. Development spending rose, while current spending remained moderate. The primary surplus improved to Rs 3,468.7 billion (3.0% of GDP), and the fiscal deficit narrowed to 2.6% of GDP, reflecting effective fiscal consolidation and macroeconomic stability efforts.
Agriculture grew by 0.56% in FY2025, with major crops declining but strong growth (4.78%) in other crops. Livestock, forestry, and fishing remained stable, supported by timely input availability and policy measures.
Industry grew by 4.77% in FY2025, reversing last year’s decline. LSM showed mixed but resilient performance amid easing inflation.
Nominal GDP grew by 9.1% in FY2025, down from 25.7% last year, reflecting post-inflation normalization. Economy size reached Rs 114.7 trillion; GNI followed a similar trend. This growth reflects the impact of tight fiscal and monetary policies aimed at bringing macroeconomic stability.
In FY2025, household consumption drove demand, comprising 83% of GDP. Its growth slowed to 7.99% (from 28.15%) but contributed 6.7 percentage points to overall growth. NPISH share rose slightly to 1.04% of GDP.