ISLAMABAD: The Finance Ministry has claimed that a sustained recovery was witnessed in all macro-economic indicators including inflation, current account, forex reserves and revenue collections.
The Ministry of Finance issued monthly “Economic Update and Outlook” today. The report covers performance of economic indicators during the first four months of the current fiscal year.
The report discussed the performance of the agriculture sector and said that h sowing of the wheat is in full swing. The federal government has urged provinces to make utmost efforts to ensure input supplies and facilitate the farmers to enhance wheat sowing.
While discussing the input situation, the report showed an encouraging trend in the availability of inputs of agriculture production. The report shows that the DAP offtake was 309 thousand tonnes, substantial growth by 92.2 percent during the month of Oct 2024 against the last months of the last fiscal year.
The urea offtake was 358 thousand tonnes which squeezed by 21.9 percent as compared to the same period last year.
The Large Scale Manufacturing (LSM) sector’s growth has contracted by 0.8 percent during Jul-Sep FY2025 against the contraction of 1.0 percent same period last year the report further showed.
The performance of the auto industry remained encouraging as production and sales of all vehicles witnessed growth of 21.2 percent and 21.8 percent, respectively during Jul-Oct FY2025.
The country’s external account improved due to increase in exports, imports and remittances during the four months of the current fiscal year. This was the third consecutive monthly surplus during the current fiscal year.
The declining in the Monetary Policy is signaling certainty and boosting business confidence. The decision of cut in the monetary policy rate by 250 basis points to 15 percent is based on faster than expected decline in the inflation which reached its medium-term target range in October, mentioned in the report.
A sharp decline in food inflation, favorable global oil prices and maintained gas tariffs with low PDL rates have receded inflationary pressures in recent months.
The government has retired Rs 1866.8 billion against the borrowing of Rs 753.2 billion last year during the first four months of the current fiscal year. The private sector has borrowed Rs.447.1 billion during the four months as compared to the retirement of Rs. 153.5 billion last year.
The report also discussed about the Pakistan’s participation in the COP29. The country has unveiled its two policies during the conference in Baku. It has unveiled National Climate Finance Strategy to mobilize domestic and international resources to support climate adaptation and mitigation projects.
It has also announced National Carbon Market Policy to accelerate clean technology deployment and attract investment in sectors with significant emissions reduction potential.
