Pakistan Economic Survey 2024-25 Details Fiscal Gains, Economic Stabilization

Islamabad, June 9, 2025 – Minister of Finance Senator Muhammad Aurangzeb released the Pakistan Economic Survey 2024-25 today, presenting the nation’s economic performance in the last financial year. The annual survey, released by the Ministry of Finance, highlights fiscal discipline, lowering inflation, and a stabilized external account as preparing Pakistan for sustained growth amidst global and domestic challenges.

The survey notes a first-quarter fiscal surplus, a primary surplus of 3.0% of GDP, and inflation dropping to a six-decade low of 0.3% in April 2025. A current account surplus and increased foreign exchange reserves further underscore improved economic indicators. The Pakistan Stock Exchange’s 50% return reflects growing investor confidence, driven by policy reforms and macroeconomic stability.

Key Highlights of the Pakistan Economic Survey 2024-25:

• GDP and Investment: Real GDP grew by 2.68% in FY2025, with the investment-to-GDP ratio rising to 13.8% from 13.1%. Per capita income increased 9.7% to US$1,824.
• Fiscal Performance: A fiscal surplus of Rs 1.896 trillion (1.7% of GDP) was recorded in Q1 FY2025, with a primary surplus of 3.0% of GDP for July-March.
• Inflation: Inflation fell to 0.3% in April 2025 from 17.3% a year earlier, with average CPI inflation for July-April at 4.7%, down from 26.0%.
• External Account: A current account surplus of US$1.9 billion was posted for July-April FY2025, bolstered by 31.0% remittance growth to US$31.2 billion.
• Foreign Exchange Reserves: Reserves reached US$16.64 billion by May 27, 2025, up from US$14.31 billion the previous year.
• Capital Markets: The KSE-100 index rose 50.2% to 117,807 points, with market capitalization up 38.5% to Rs 14,374 billion.
• Agriculture: The sector grew by 0.56%, led by livestock, though major crops like cotton (-30.7%) and wheat (-8.9%) declined.
• Manufacturing and Mining: Manufacturing grew 1.3%, but large-scale manufacturing contracted 1.5%. Mining and quarrying saw a 3.4% contraction.
• Public Debt: Total public debt was Rs 76,007 billion by March 2025, with measures like debt repurchasing and Sukuk issuances managing risks.
• Social Protection: The Benazir Income Support Programme disbursed Rs 385.64 billion to 9.87 million beneficiaries by March 2025.
• IT and Telecom: IT exports increased 23.7% to US$2,825 million, with a trade surplus of US$2,429 million. Telecom subscriptions hit 199.9 million.
• Climate Action: Pakistan secured US$1.4 billion under the IMF Resilience and Sustainability Facility and launched a Carbon Market Policy at COP29.

The survey emphasizes ongoing efforts to broaden the tax base, rationalize expenditures, and strengthen social safety nets. The International Monetary Fund has recognized Pakistan’s progress, approving US$1.4 billion to support climate resilience initiatives.

The report also details investments in education, health, and youth skill development, alongside infrastructure projects in transport and energy, to support inclusive growth.

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Finance Minister’s Statement:

In his foreword, Senator Muhammad Aurangzeb stated: “Pakistan’s economy has been globally acknowledged for achieving macroeconomic stabilization in the outgoing fiscal year. The government remains steadfast in its commitment to providing stable livelihoods and addressing macroeconomic imbalances and uncertainties. Pakistan is consistently advancing on an upward trajectory, built upon investment-friendly reforms, enhanced domestic savings, and increased foreign direct investment, with GDP growth projected at 5.7 percent over the medium term. The Pakistan Economic Survey 2024-25 highlights significant achievements in economic management and structural reforms. Moving forward, the government is committed to further optimizing policy frameworks, strengthening institutional governance, and fostering international collaborations to sustain economic resilience. This Economic Survey is a testament to Pakistan’s resilience and economic potential under diligent governance.”

The Pakistan Economic Survey 2024-25, prepared by the Economic Adviser’s Wing, provides a comprehensive resource for policymakers, analysts, and stakeholders tracking Pakistan’s economic trajectory.

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An Overview

• GDP Growth: 2.68% in FY 2025, supported by US$7 billion IMF Extended Fund Facility.

• Inflation: Dropped from 20.7% in April 2024 to 0.3% in April 2025; average 4.7% for July-April (from 26.0%).

• Fiscal Deficit: Reduced to 2.6% of GDP from 3.7%; primary surplus at 3.0% of GDP (from 1.5%).

• Tax Revenues: Surged 26.3% to Rs 9.3 trillion.

• Current Account: Shifted to US$1.9 billion surplus from US$1.3 billion deficit, with 31% remittance growth to US$31.2 billion.

• Foreign Exchange Reserves: Reached US$16.64 billion by May 2025.

• KSE-100 Index: Rose 50.2% to 117,807 points; market capitalization up 38.5% to Rs 14,374 billion.

• Agriculture: Grew 0.56%, led by livestock (4.72%); cotton (-30.7%), wheat (-8.9%) declined.

• Manufacturing: Grew 1.3%; large-scale manufacturing contracted 1.5%, mining by 3.4%.

• IT Exports: Increased 23.7% to US$2.825 billion, with US$2.4 billion trade surplus.

• Public Debt: Recorded at Rs 76,007 billion.

• Climate Initiatives: Secured US$1.4 billion from IMF RSF; launched Carbon Market Policy at COP29.