Pakistan’s economy has made notable progress as it enters the 2024-25 fiscal year, with recent data highlighting a positive shift in key economic indicators, offering optimism for the months ahead.
According to the Ministry of Finance’s monthly outlook for August, Consumer Price Index (CPI) inflation dropped to its lowest point in 32 months, reaching 11.1% year-on-year (YoY) in July 2024, compared to 12.6% the previous month and 28.3% in July 2023. This decline signals a promising trend towards achieving single-digit inflation in the near future.
The fiscal sector also displayed resilience, with the government reducing the fiscal deficit to 6.8% of GDP in FY24, down from 7.8% the previous year. Additionally, a primary balance surplus of 0.9% of GDP was reported, a significant improvement from the 1.0% deficit in FY23. Total revenues saw a robust 38% increase, fueled by significant growth in both tax and non-tax collections during FY24.
