ISLAMABAD: Pakistan’s Ministry of Finance has released its monthly economic outlook, revealing a mixed bag of trends, ARY News reported.
In its monthly Economic Outlook report, the Ministry stated that the country has seen an increase in remittances, exports, imports, and tax revenue, which is a positive sign for the economy.
However, the report also notes that inflation is expected to rise by 1-1.5% in March and 2-3% in April. Furthermore, prices of essential items like chicken, dairy, and vegetable oil increased in February, with inflation rising from 8.2% to 9.7%.
The report highlights that the country’s large-scale manufacturing output decreased by 1.78% from July to February. On the other hand, foreign investment increased by 11.8% on a year-on-year basis, although it declined by 67.5% in February.
Remittances also saw a significant 32.5% increase from July to February. The report further highlights that exports grew by 7.2% and imports by 11.4% during the current fiscal year. The current account deficit also narrowed, while the value of the rupee slightly decreased.
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Overall, the report suggests that Pakistan’s economy is showing mixed trends, with some positive signs of growth and investment, but also challenges related to inflation and manufacturing output.
In a separate development, the IMF urged Pakistan’s Special Investment Facilitation Council (SIFC) to refrain from granting tax exemptions to international investment projects, including the Chaghi-Gwadar railway track project worth $2 billion.
According to sources, the IMF delegation maintained that tax exemptions for international investments would hinder the country’s revenue generation.
The government had requested Gulf countries to invest in the Chaghi-Gwadar railway track project, but the IMF has refused to grant tax exemptions to the SIFC for international investments. The SIFC has been providing a platform for investment and facilitating the transportation of minerals from Reko Diq to Gwadar through a new railway line.
