ISLAMABAD (PEN) : The State Bank of Pakistan (SBP) has released its semi-annual report, showcasing notable improvements in key economic indicators during the first half of the fiscal year 2024-25.
Economic Growth Moderates
The report indicates a moderation in real GDP growth, primarily due to reduced production of major Kharif crops and a contraction in industrial activities. Despite this, other critical sectors exhibited positive momentum, contributing to overall economic stability.
Current Account Surplus Achieved
A significant highlight is the achievement of a current account surplus, marking a positive shift in Pakistan’s external sector. This surplus reflects improved trade balances and increased remittances, contributing to enhanced financial stability. Additionally, foreign exchange reserves saw an increase, providing a stronger cushion against external shocks. ([Pakistan Posts $944 Million Current Account Surplus in 5MFY25
Fiscal Deficit Declines
The report also notes a sharp improvement in fiscal indicators, with the fiscal deficit falling to its lowest level in recent years. This decline is attributed to prudent fiscal management and improved revenue collection, reflecting the government’s commitment to fiscal discipline.
Inflationary Pressures Ease
Inflationary pressures have eased, supported by a balanced monetary policy stance and a decline in global commodity prices. These factors have collectively helped in reducing inflation across the country, contributing to improved purchasing power for consumers.
Outlook and Recommendations
The SBP emphasizes that continued reforms, policy discipline, and supportive global conditions will be essential for maintaining the current trajectory of economic recovery. The report underscores the importance of sustained efforts to address structural challenges and ensure long-term economic stability.
In conclusion, while challenges remain, the SBP’s report highlights significant progress in Pakistan’s economic situation, driven by strategic policy measures and external factors. Maintaining this momentum will be crucial for sustaining economic growth and stability in the coming months.
