Pakistan's economy on path to recovery, says finance minister

Islamabad, Jun 9 (PTI) Pakistan's economy has been on the path to recovery for the last two years and the process was further stabilised and strengthened in the current fiscal year, Finance Minister Muhammad Aurangzeb said on Monday.

Addressing a press conference after launching the Economic Survey 2024–25, a key pre-budget document highlighting the economic performance of the government in the fiscal year 2024-25, Aurangzeb said the GDP growth in 2023 was -0.2pc, which rose to 2.5pc in 2024.

“This year, we announced a 2.7pc growth for 2025. This is a gradual recovery and the right way to go about it is to focus on sustainable growth,” he said.

He also placed Pakistan’s recovery within the broader global context, noting that the global GDP growth has reached 2.8 per cent.

"The next fiscal year will be a turnaround story,” he said, setting the tone for a budget expected to aim for IMF compliance, increased revenue, and growth-focused reforms.

Highlighting macroeconomic indicators, Aurangzeb said the current account recorded a surplus of $1.9 billion during July–April FY25, driven by strong IT exports, which were about $3.5 billion.

“Remittances are projected to reach $37–38 billion by year-end, up from $27 billion two years ago,” he said.

Talking about macroeconomic indicators, the minister said, “public debt and debt-to-GDP ratio was 68 per cent, which is now 65 per cent.

He said forex reserves as of June 30, 2024, were $9.4 billion, which was a remarkable recovery from 2023 when Pakistan was down to two weeks of import cover.

He said foreign exchange reserves rose to $16.64 billion in 2025, boosted by improved economic indicators and renewed investor confidence. Of the total reserves, the State Bank of Pakistan held $11.5 billion, while commercial banks retained $5.14 billion.

He said that the increase follows improved credit ratings, with Fitch upgrading Pakistan’s sovereign rating from CCC+ to B- with a stable outlook.

The minister announced plans to privatise 24 state-owned enterprises (SOEs) in the coming year, after curbing annual losses of Rs800 billion.

The minister said agriculture grew 2.6 per cent while construction posted a 6.6 per cent growth rate, while services expanded by 2.9 per cent.

The Pakistan Economic Survey 2024–25 highlights trends, achievements, and challenges across major sectors, including agriculture, manufacturing, industry, services, energy, information technology and telecommunications, capital markets, health, education, transport, and communication.

Meanwhile, National Assembly Speaker Ayaz Sadiq approved the schedule for the upcoming sessions to present and discuss the federal budget for 2025–26.

According to the approved schedule, the budget will be presented in the National Assembly on June 10. The assembly would remain in recess on June 11 and 12, and the budget debate would commence on June 13.

The general discussion on the budget will continue until June 21, and the debate will formally conclude on the same day.

On June 23, the National Assembly will hold a discussion on the charged expenditures for the fiscal year 2025–26, which will be followed by debates and voting on Demands for Grants and Cut Motions on June 24 and 25.

The Finance Bill 2025 will be taken up for approval by the National Assembly on June 26, while Supplementary Grants and other related matters will be discussed and voted on June 27.

Pakistan’s financial year begins from July 1. PTI SH ZH ZH