Economic Survey of Pakistan 2025 Reveals 2.7% GDP Growth Rate
Key highlights of the survey include a significant drop in inflation, a substantial increase in foreign exchange reserves, and major gains in energy sector reform. The government's move towards a defined-contribution pension system and comprehensive review of ministries and departments are also expected to improve governance and reduce inefficiencies.
Pakistan's economy has posted a 2.7% GDP growth rate in the outgoing fiscal year, falling short of the 3.6% target, according to the Economic Survey 2024-25 presented by Finance Minister Muhammad Aurangzeb. The survey highlights the performance of various sectors, including agriculture, industries, and services, and notes significant improvements in fiscal indicators.
The agriculture sector grew by 0.56%, industries by 4.77%, and services by 2.91%. However, large-scale manufacturing contracted by 1.5% due to high costs and supply constraints. The survey also reveals that Pakistan's debt-to-GDP ratio has reduced from 68% to 65%, and the tax-to-GDP ratio has hit a five-year high. The government has managed to save debt servicing cost of around Rs800 billion to Rs1 trillion due to a decline in the policy rate.
Remittances have crossed $31 billion, and exports have increased by 7%. The current account balance remained positive for the first time, and the fiscal deficit decreased to 2.6% of the GDP. The survey highlights the government's efforts to reduce debt servicing costs, increase revenue collection, and improve the tax-to-GDP ratio. The finance minister emphasized the need for sustainable growth and structural reforms.
The Economic Survey 2024-25 provides a comprehensive overview of Pakistan's economic performance in the outgoing fiscal year. The government's efforts to stabilize the economy and implement structural reforms are expected to yield positive results in the long run. The upcoming budget for FY26, to be announced on June 10, is expected to build on the progress made so far and provide a roadmap for sustainable economic growth.