Islamabad: Finance Minister Senator Muhammad Aurangzeb has released the National Economic Survey.
The Finance Minister stated that Pakistan is moving toward economic stability, with GDP growth reaching 2.7% during the current fiscal year. The inflation rate stands at 4.6%.
He noted that last year the policy rate was 22%, which has now been reduced to 11%.
Senator Muhammad Aurangzeb said that the IMF program has helped restore confidence. Prime Minister Shehbaz Sharif secured the Stand-By Arrangement (SBA) program, and it is commendable that the caretaker Finance Minister kept the program on track.
The Finance Minister emphasized that reforms were essential to change the DNA of the economy. The tax-to-GDP ratio is at its highest level in five years. The government has implemented reforms to improve the performance of the Federal Board of Revenue (FBR).
He added that every transformation requires two to three years. The power sector witnessed a historic recovery within a year, and there has been improvement in the governance of electricity distribution companies.
According to Senator Aurangzeb, the purpose of the IMF program was macroeconomic stability. Compared to global growth, Pakistan has shown recovery in GDP growth. Global inflation was 6.8% two years ago and has now decreased to 0.3%, while Pakistan’s current inflation rate is 4.6%.
He said that foreign exchange reserves have seen significant growth this fiscal year. “Now, we need to move toward stabilizing GDP. We are currently heading in a better direction.”
He also mentioned that Pakistan faced challenges in securing the recent IMF tranche. The Indian Executive Director made things difficult, but international financial institutions have stood by Pakistan.
The Federal Minister said that promoting domestic resources is a priority. Growth in the construction sector stood at 1.3%, down from 3% last year. Large-scale manufacturing growth dropped to 1.5%, while textile sector growth increased to 2.2%.
According to the Economic Survey report:
Petroleum products grew by 4.5%.
Chemical sector declined by 5.5%.
Pharmaceuticals grew by 2.3%.
Mining and quarrying growth dropped to 3.4%.
The report states that from July to March, 0.8% of GDP was spent on education. A total of Rs. 61.1 billion was allocated for higher education. The overall literacy rate was 60.6%, with male literacy at 68% and female literacy at 52.8%. Primary school enrollments reached 24.83 million.
The survey notes that Pakistan has 269 universities—160 public and 109 private. Under the skill development program, more than 60,000 youth received training in IT, agriculture, mining, and construction sectors.
The report highlights that Pakistan contributes less than 1% to global greenhouse gas emissions. Floods affected 33 million people and caused $15 billion in damages. The average temperature in 2024 was 23.52°C, and rainfall was 31% higher than normal.
The survey reveals that:
Total revenue stood at Rs. 13.37 trillion.
Tax revenue increased by 25.8%, amounting to Rs. 9.14 trillion.
Non-tax revenue rose by 68%, reaching Rs. 4.23 trillion.
Total expenditures were Rs. 16.34 trillion.
Current expenditures increased by 18.3%, totaling Rs. 14.59 trillion.
Development expenditures rose by 32.6%, amounting to Rs. 1.54 trillion.
The fiscal deficit stood at 2.6%, while the primary surplus was 3%.