MACROECONOMIC OVERVIEW:
Pakistan’s economy is showing signs of improvement with a stable exchange rate and a decline in inflation, signaling growing resilience and improved macroeconomic activity. Stability in both the fiscal and external sectors has been maintained, supported by significant financial inflows. Pakistan has also successfully negotiated a US$7 billion Extended Fund Facility (EFF) with the IMF for the next three years, reinforcing macroeconomic stability.
GDP growth accelerated to 2.4% in FY2024, driven by an increase in the agriculture, manufacturing and services sectors, and is expected to grow by 3.5% in FY2025. Industrial output is gradually stabilizing with key sectors beginning to ramp up production. Although challenges persist, particularly in the domestic market, the outlook remains cautiously optimistic.