ISLAMBAD ( WEB NEWS )
The Ministry of Finance has released its monthly Economic Update Outlook report, which indicates positive economic progress and a path toward sustainable development over the past five months. According to the outlook report issued by the Ministry of Finance, exports, remittances, investment, and foreign exchange reserves have all increased. Inflation is expected to further decrease to around 4-5% this month. With the policy rate at 13%, economic activities are anticipated to accelerate, and there has been an increase in the production of vehicles and cement. However, the overall industrial sector remains under pressure.
The Ministry of Finance noted that the production of electric vehicles in Pakistan marks the beginning of a new era. Agricultural loans have risen by 8.5%, reaching a total volume of 925 billion rupees over five months. There are concerns about water shortages due to reduced rainfall, which may affect wheat and other Rabi crops. Over the past year, the policy rate has decreased from 22% to 13%, and the rupee has stabilized. The exchange rate of the dollar has dropped by 4 rupees and 48 paisas, from 282.90 to 282.90 rupees.
The report mentions that from July to November, the primary balance was a surplus of 3,124 billion rupees. With better control over expenditures, the fiscal deficit turned into a surplus of 495 billion rupees. During this period, remittances increased by 33.6%, reaching a volume of 14.76 billion dollars. Exports also grew by 7.4%, reaching a record 13.28 billion dollars from July to November. The current account was in surplus by 940 million dollars during the same period.
The Ministry of Finance also stated that imports increased by 8.3%, reaching a volume of 23 billion dollars, while total investment rose by 42.2%, reaching 1.27 billion dollars. Foreign exchange reserves grew by 460 million dollars, bringing the total to 11.85 billion dollars. From July to October, the FBR tax revenue increased by 23.2%, totaling 4,295 billion rupees. During the same period, non-tax revenue doubled, reaching 3,192 billion rupees. The Ministry emphasized that financial and administrative reforms will pave the way for sustainable economic growth.