Finance ministry issues monthly economic outlook report

ISLAMABAD: The finance ministry on Thursday issued a monthly economic outlook report, saying that Pakistan’s economy continued to demonstrate positive developments in the first seven months of the current fiscal year.

In its monthly economic outlook report, the finance ministry noted that the steep decline in inflation fostered a stable financial environment, enabling the central bank to steadily reduce the policy rate. Investors’ confidence is evident in the convincing performance of Pakistan Stock Exchange.

According to the finance ministry’s report, during the first six months of current fiscal year, total revenues grew by forty-two point five percent to 9763.8 billion rupees against 6854 billion rupees last year.

The external sector position has significantly improved driven by continued increase in exports and workers’ remittances despite an upward trend in imports.

During the first seven months of current fiscal year, the current account posted a surplus of 682 million dollars compared to a deficit of 1,801 million dollars last year. During this period, exports of goods increased by 7.6 percent, reaching 19.2 billion dollars as compared to 17.8 billion last year, the finance ministry’s monthly economic outlook report read

Workers’ remittances recorded robust inflows of 20.8 billion dollars, marking a 31.7 percent increase over 15.8 billion dollars last year. Foreign Direct Investment (FDI) net inflows were recorded at 1,523.6 million dollars, 56.2 percent higher than the previous year.

The primary surplus is expected to improve further in the coming months. Pakistan’s total liquid foreign exchange reserves were recorded at 15.9 billion dollars on 14th February this year with the State Bank of Pakistan’s reserves at 11.2 billion dollars.

Inflation is anticipated to remain within the range of two to three percent this month.