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Economic recovery consolidates in FY2025, says Finance Minister

By
Asif Jalal
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0
APP03-090625 ISLAMABAD: June 09 - Federal Finance Minister, Muhammad Aurangzeb briefs media personnel regarding the Pakistan Economic Survey 2024-25, a pre-budget document during launching ceremony at Ministry of Finance. APP/MAF/IFD/ABB
ISLAMABAD, Jun 9 (APP) : Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said here on Monday that Pakistan’s economic recovery, which began after Fiscal Year 2023, gained momentum in FY 2024 and showed signs of consolidation in FY 2025, indicating a shift towards sustained stability and GDP growth.
Addressing a press conference at the launching ceremony of Economic Survey of Pakistan 2024-25, the minister said that during the last two years, the economy navigated a complex and challenging environment characterized by multiple global crises and a broader domestic economic slowdown.
Elaborating the details, the minister said, in FY2023, the economy was struggling to stabilize amid a confluence of domestic and global economic shocks and when the incumbent government assumed office in March 2024, the economy was grappling with multiple challenges.
The challenges included decline in GDP growth (-0.2% in FY2023); contraction in industrial activity (-3.9%); high inflation 29.2%, massive PKR depreciation (28.5%); and policy rate increase up to 22%.
In addition, the challenges also included squeezing fiscal space – higher fiscal deficit (7.8% of GDP); high public debt at (75% of GDP); depletion of Forex reserves ($6.3 bn in FY2023), and rising financing needs of around $25 billion in FY2024, putting the external sector under pressure.
“To cope with these challenges, the government embarked on a journey towards stability and sustainable, inclusive growth through various structural and policy adjustments,” the minister remarked.

 

He said, the government successfully completed the International Monetary Fund (IMF) Standby Arrangement (SBA) program with a focus on fiscal consolidation, gradual withdrawal of import restrictions, market-determined exchange rates, energy, SOEs, and governance reforms.

The successful IMF programme helped in building the confidence of the friendly countries, resulting in the disbursement of $ 3 billion of bilateral assistance (KSA $ 2 billion, UAE $ 1 billion).
He said, the government’s effective policy measures led to a moderate economic recovery in FY2024, marked by a $5 billion increase in foreign exchange reserves, reversing the $5.4 billion depletion witnessed the previous year. Fiscal consolidation efforts resulted in a primary surplus for the first time in two decades, contributing to a decline in the debt-to-GDP ratio.

 

Administrative actions and central bank interventions helped narrow the gap between interbank and open market exchange rates, while incentives under the Pakistan Remittance Initiative (PRI) boosted formal remittance inflows.

To combat inflation, the government implemented a multi-pronged approach involving monetary tightening, fiscal prudence, and targeted price monitoring of essential items.

 

In the agriculture sector, access to credit, fertilizer, machinery, and certified seeds was improved to enhance productivity. Investment inflows were encouraged through the Special Investment Facilitation Council (SIFC), particularly in sectors like energy, IT, agriculture, and mining, as part of a broader growth strategy.

Social protection received a boost with a 27% increase in the Benazir Income Support Programme’s allocation, reaching Rs 593 billion. Financial inclusion efforts were strengthened through the launch of Buna-Raast connectivity while under the Prime Minister Youth Skill Development Program, thousands of young individuals were being trained and certified in IT and hospitality by globally recognized institutions.
These reforms collectively contributed to reducing the twin deficits, stabilizing the exchange rate, easing inflationary pressures, and setting the stage for continued recovery in FY2025.
Giving details about the performance of Fiscal Year 2024-25, the minister said, economy witnessed a broad-based recovery in FY2025, with real GDP growing by 2.7%, driven by a robust 4.8% rebound in industrial activity.
The size of the economy crossed the $400 billion mark for the first time, while per capita income rose to $1,824. Inflation declined to a multi-decade low of 0.3% in April 2025, supported by exchange rate stability, tight monetary policy, and improved food supply.
The external sector strengthened, with a current account surplus of $1.9 billion, increased exports and remittances, and a $2.3 billion rise in foreign exchange reserves.
Total foreign investment rose by 16.5%, and overseas Pakistanis’ confidence returned, reflected in record Roshan Digital Account inflows. Fiscal consolidation led to a lower fiscal deficit (2.6% of GDP) and a higher primary surplus (3.0% of GDP), alongside 25.9% growth in FBR tax collections.

 

The policy rate was reduced from 22% to 11% as inflation eased. The KSE-100 index surged by over 52%, investor sentiment improved, and Pakistan’s credit ratings were upgraded by both Fitch and Moody’s.

The IMF approved a new $7 billion EFF programme, disbursing $2.1 billion to date and providing additional support under the RSF. Banking sector assets and deposits posted healthy growth, with improved capital adequacy.

Energy diversification efforts continued, with the total installed power capacity reaching 46,604 MW. Overall, macroeconomic stability, enhanced investor confidence, and improved fiscal and external fundamentals signal a positive trajectory for the economy in FY2025.

Talking about fiscal sustainability and economic recovery, he said, the government has intensified reforms focused on revenue enhancement, expenditure rationalization, and deficit reduction. These efforts led to a historic fiscal surplus of Rs 1,896 billion (1.7% of GDP) in Quarter FY2025, the first in 24 years. Key reforms include provincial tax mobilization—particularly in agriculture—an updated National Fiscal Pact, and GST rationalization.

Investments in education are ongoing, with Rs 61.12 billion allocated to HEC in FY2025 and literacy initiatives underway. Pakistan’s literacy rate stands at 60.65%, with urban literacy at 74.09% and rural at 51.56%.

Youth empowerment remains a priority through PMYSDP, training over 56,000 individuals, and overseas employment facilitation, with 727,381 workers registered abroad in 2024. BISP received Rs 592.48 billion to support 9.9 million beneficiaries.
On climate action, Pakistan launched its first carbon market policy and issued a Rs 30 billion Green Sukuk. It also secured $1.4 billion under the IMF’s RSF and initiated projects like Recharge Pakistan to enhance resilience. Despite minimal contribution to global emissions, Pakistan continues to push for sustainable energy and climate adaptation, reaffirming its environmental commitment through the Economic Survey FY2025, he added.

The minister termed IT and telecom sectors are key drivers of digital growth and economic resilience. In July–March FY2025, ICT exports rose by 23.7% to $2.8 billion, with a trade surplus of $2.43 billion and $400 million contributed by freelancers.

Over 50 Software Technology Parks and e-Rozgar centers support digital expansion, while National Incubation Centers have helped over 1,900 startups, generating 185,000 jobs and Rs 30.8 billion in investments.
These developments, alongside structural reforms and investments in human capital, support inclusive growth, digital transformation, and macroeconomic stability under Pakistan’s home-grown reform agenda.
Meanwhile, talking about global economic performance, the minister said after a period of global shocks, the world economy has stabilized with modest growth, though recent tariff tensions have reignited uncertainty.

He said, Global GDP growth was projected to slow to 2.8% in 2025 before improving to 3.0% in 2026, while inflation is expected to decline from 5.7% in 2024 to 4.3% in 2025 and 3.6% in 2026—offering relief for domestic price pressures.

The economic outlook for Pakistan’s key trading and remittance partners, including Saudi Arabia, UAE, China, and the US, remains positive. Additionally, global trade volume is set to expand, supporting Pakistan’s export and remittance growth.

Pakistan warns of “aggressive steps” if India builds canals or dam on its rivers

By
Ishtiaq Rao
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0

ISLAMABAD, Jun 9 (APP): The head of the Pakistani parliamentary delegation and Former Foreign Minister Bilawal Bhutto Zardari on Monday condemning the weaponisation of water by India, warned that Pakistan would have to take more aggressive steps if India built new canals or a new dam on the three rivers in Pakistan’s domain.

“India’s threat to shut off the water supply to 240 million people in Pakistan is a violation of the UN Charter. Were they to act on it, Pakistan has been very clear: we’d consider that an act of war…We can’t allow this precedent to be set; we can’t weaponize water…Were they to build new canals or a new dam on the three rivers in Pakistan’s domain, we’d have to take a more aggressive step,” he said in an interview with Sky News during his visit to the UK.

Bilawal Bhutto, also the chairman of Pakistan Peoples Party (PPP) said that Pakistan had been to war with India before and also had many exchanges, but never had such a drastic step been taken.

“At the moment, the threshold for conflict between India and Pakistan is the lowest it’s ever been in our history. We’ve achieved a ceasefire, but we have not achieved peace.”

He said throughout the recent escalation, Pakistan had acted with restraint and responsibility, and even today, “Pakistan’s message is we want peace—peace through dialogue and diplomacy. We believe there is no military solution to any of the issues between India and Pakistan.”

He said that unfortunately, India refused to talk and the delegation was going from capital to capital, engaging with the international community, seeking their assistance in this pursuit for peace.

“Pakistan believes there needs to be dialogue and diplomacy where we discuss all issues—terrorism, Kashmir, or water—and start moving forward.”

The former foreign minister said there was no legal term for suspending or holding the Indus Waters Treaty in abeyance as besides Pakistan and India, it also included international institutions as a party which required consensus for any changes.

To a question, he said the water hadn’t stopped flowing as India lacked the capacity at the moment to completely stop it, but they delayed the release.

To a question, Bilawal told the interviewer that Pakistan had taken effective action against terrorist groups under the FATF framework and was removed from FATF grey list, which evidenced the international community’s endorsement of Pakistan’s actions against such groups.

However, he said that the terrorist attack that took place in India had nothing to do with Pakistan – carried out by an indigenous group within India.

Reiterating Pakistan’s stance that President Trump deserved credit for Pakistan-India ceasefire, he said throughout this episode, India had engaged in misinformation and disinformation.

“They’ve not been honest with their own public, the media, or their allies, and this is one additional thing they’re not honest about… They went to war on the basis of a lie, and then they couldn’t win that war. They lied about the planes we shot down, they lied about the details of this terrorist attack,” he said.

Bilawal Bhutto said India failed to name a single terrorist involved in this attack, reveal his identity or any information about border crossing.

Emphasising the UK’s “unique role” in the entire situation, he called the country should encourage India to engage in dialogue with Pakistan.

“India said no to an impartial investigation when we asked for one into the terrorist attack. They say no to mediation, be it from the UK or the US, and they say no to dialogue with Pakistan. If they’re stuck in the status quo, we’ve lowered the conflict threshold between India and Pakistan to the point where any terrorist attack means war.”

Calling Pakistan’s engagements with UK “really positive,” he believed the UK government was keen to encourage both sides to engage in dialogue to deal with all issues. It’s only the Indians who are being difficult about this, he remarked.

One dead, another injured in road accident

By
Asif Jalal
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0
SIALKOT, Jun 09 (APP): A tragic road accident occurred near Rahimpur Stop near Shell Pump on Wazirabad Road, resulting in the death of one youth and injuries to another.
According to an eyewitness, a passenger bus was coming from Mundair Sharif towards Rahimpur. As the bus approached a U-turn, a motorcyclist suddenly appeared in front of it. In an attempt to avoid hitting the motorcycle, the bus overturned, and the motorcyclist was trapped underneath.
As a result, 18-year-old Ali Hassan, a resident of Dulchike, died on the spot after being crushed under the bus. Rescue 1122 shifted his body to the hospital.
The second victim, 40-year-old Asif, sustained injuries and was given first aid at the scene by rescue 1122 personnel.

PSB lauds FIFA’s invitation to PFF

By
Asif Jalal
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0
ISLAMABAD, Jun 09 (APP): The Pakistan Sports Board (PSB) has welcomed FIFA’s exclusive invitation to the Pakistan Football Federation (PFF) to join the ‘Football for Schools’ (F4S) programme, calling it a timely and positive development in the country’s football journey.
According to the PSB, the recent completion of elections and formal reconstitution of the PFF marks a new beginning for football in Pakistan. FIFA’s invitation is being seen as a golden opportunity to promote football at the grassroots level, particularly among school-aged children. If Pakistan confirms its participation, FIFA will provide 164,940 footballs for children aged 4 to 14 across primary and secondary schools, along with a one-time grant of USD 50,000 to help launch the initiative effectively.
A PSB spokesperson stated that his is a step in the right direction. With the reorganisation of the Football Federation now complete, we have a real chance to revive sports at the school level, promote healthy activities, and connect our youth with the spirit of the game.”
As part of the initiative, schools and educators will gain access to a dedicated Football for Schools mobile application featuring training content and instructional guidance.
In addition, FIFA will send a team of experts to conduct capacity-building workshops—either online or on-ground—to enhance the skills of physical education instructors in Pakistan.
The Pakistan Sports Board reaffirmed its full support for the initiative and expressed hope that the Pakistan Football Federation will seize this international opportunity to lay the foundation for a brighter future for football in the country—starting from the schools.

Secretary Information, PIO extend condolences to Fariha Idrees on mother’s death

By
Asif Jalal
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0
ISLAMABAD, Jun 09 (APP): Federal Secretary for Information and Broadcasting Ambreen Jan and Principal Information Officer (PIO) Mubashir Hassan on Monday expressed deep grief and sorrow on the death of senior anchorperson Fariha Idrees’ mother.
Information Secretary Ambreen Jan and PIO Mubashir Hassan expressed their heartfelt condolences and sympathy with Fariha Idrees and her family.
Ambreen Jan said she was deeply saddened to hear the news of the death of Fariha Idrees’ mother, as loss of mother was the biggest shock in life.
The PIO Mubashir Hassan said he equally shared the grief of the bereaved family.
Federal Secretary for Information Ambreen Jan and PIO Mubashir Hassan prayed to Allah Almighty to rest the departed soul in eternal peace and grant courage to the bereaved family to bear this loss with fortitude.

Imran Ghaznavi’s new book sets global standard in crisis communication, corporate leadership

By
Asif Jalal
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0
ISLAMABAD, Jun 09 (APP): Renowned corporate strategist Imran Ghaznavi has released a landmark book, Reputation Management and Crisis Communication: A Study of Corporate Sector, offering a vital guide for business leaders navigating reputational challenges in an increasingly complex corporate world.
Now available internationally, the book presents a comprehensive roadmap for managing corporate reputation—an intangible asset the World Economic Forum estimates contributes up to 65% of a company’s market value.
With over 30 years of experience advising multinational firms through major disruptions like the 2008 financial crisis and the COVID-19 pandemic, Ghaznavi emphasises that “reputation is not just an image; it’s hard-earned capital that can disappear within minutes.”
The publication introduces a structured, three-phase model for crisis management, focusing on pre-crisis planning, real-time response, and post-crisis recovery. It also argues for embedding reputation risk into corporate governance, suggesting that 30% of executive compensation be tied to reputation performance.
Key features of the book include in-depth analysis of high-profile corporate crises, such as the Volkswagen emissions scandal and Apple’s supply chain issues, strategies for managing online backlash, disinformation, and the rising challenge of deepfakes and ready-to-use templates for crisis communication, media engagement, and reputation audits.
The book, which is targeted at CEOs, board members, public relations experts, risk professionals, students, and policymakers, is being lauded as a must-read for modern leadership.
Industry analysts say Ghaznavi’s work bridges a critical gap in business literature by blending academic research with real-world applications, setting a new benchmark for corporate crisis leadership in the digital era.

Commissioner visits BVH, Daarul Amaan

By
Asif Jalal
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0
BAHAWALPUR, Jun 09 (APP): Commissioner Bahawalpur Division Musarrat Jabeen visited Emergency Department of Bahawal Victoria Hospital. She visited various sections of the department and inspected the medical facilities being provided. She also talked to the patients and gave them flower bouquets to wish Eid.
Deputy Commissioner Bahawalpur Dr Farhan Farooq, District Police Officer Bahawalpur Hassan Iqbal, Medical Superintendent Bahawal Victoria Hospital Hamid Bukhari and others were also present.
Later, Commissioner visited Daarul Amaan Bahawalpur. She met the women and children and gave them Eid gifts. She also cut cake with them. She inspected the facilities provided to the residents of Daarul Amaan.

SMC continues cleaning operation on third day of Eid-ul-Azha

By
Asif Jalal
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0
SUKKUR, Jun 09 (APP): The Sukkur Municipal Corporation (SMC) continued its special cleaning and sacrificial animal waste disposal operation on the third day of Eid-ul-Azha.
Under the directives of Mayor Sukkur, Barrister Arslan Sheikh, SMC workers were actively engaged in cleaning activities across the city.
The SMC workers performed manual sweeping, lime spraying, and waste lifting to keep the city clean and germ-free. According to Mayor Sheikh, the SMC demonstrated its commitment to providing a clean and healthy environment for citizens during the festival.
Thousands of tons of sacrificial animal waste were collected and safely disposed of in Sukkur.
The operation was closely monitored from the central control room to ensure timely action and prevent any negligence or delays.
Mayor Sheikh, along with Deputy Mayor Dr. Arshad Mughal, visited the SMC control room, where Municipal Commissioner Zain ul Aabdin Mirabi provided a detailed briefing on the ongoing cleaning operation.
The SMC’s special cleaning operation covered both urban and rural areas of the district, with workers disposing of waste in a timely manner and washing areas with disinfectants and lime spraying.
The SMC’s efforts aimed to maintain a clean and hygienic environment for citizens during the Eid celebrations.

Heatwave forces citizens stay indoor during Eid in south Punjab

By
Asif Jalal
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0
MULTAN, Jun 09 (APP): A severe heatwave has gripped south Punjab this Eid, forcing people to stay indoors as temperatures soared between 43 to 45 degrees Celsius across the region.
Public parks, recreational spots, and streets wore a deserted look, even during what is usually a festive holiday season. The extreme heat left little room for traditional family outings or outdoor celebrations.
“It’s just too hot. We don’t even feel like stepping out of the house,” said Salman Amjad, a local resident. “You feel drained the moment you open the door.”
According to the Meteorological Department, the current heatwave is expected to persist until June 12, with no significant drop in temperature forecast in the coming days.
Many residents, especially those who returned to their hometowns for Eid, preferred staying indoors with their families. “We chose to stay inside. After eating meat, the heat feels even more unbearable,” said Asim, a resident of Nawabpur, Multan.
Experts like Dr Waqas Arqam warn that high temperatures, combined with heavy meat intake during Eid, may cause dehydration and fatigue. They advise citizens to drink plenty of water, avoid sun exposure, and limit physical activity.
Local authorities also reported a noticeable drop in footfall at public places, with parks, play areas, and tourist spots largely empty during all three days of Eid.
The blistering temperatures have turned the vibrant Eid mood into a quiet, home-bound celebration, as residents seek shade, fans, and water instead of outdoor fun.

Woman killed, three injured as car overturns

By
Asif Jalal
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0
SARGODHA, Jun 09 (APP): An accident on Sargodha-Lahore Road claimed the life of a 45-year-old woman and left three others injured here on Sunday.
According to Rescue 1122 sources, a family hailing from Khushab was traveling in an Alto car from Khushab to Lahore when the vehicle overturned while trying to avoid a motorcycle at Chak no 41 near Sargodha.
As a result, Kosar Bibi, aged 45, died on the spot.
The injured include 60-year-old Saleh Muhammad, 24-year-old Asad Abbas, and 14-year-old Eman Fatima.
Rescue 1122 teams reached the scene promptly and shifted the injured to Dr Faisal Masood Teaching Hospital Sargodha, for medical treatment.
The police are investigating the cause of the accident.
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