Results for: Pakistan Economy

Pakistan’s economy experienced a resurgence in the third quarter of the 2023-2024 financial year, with the gross domestic product (GDP) expanding by 2.09%. This growth is primarily attributed to a strong performance in the agriculture sector, aiding overall economic recovery. The agriculture sector recorded an impressive 6.25% growth, driven by bumper harvests in wheat, cotton, and rice. The robust agricultural performance offset slower growth in the industry and services sectors, both of which registered a modest 1.21% increase. Pakistan’s central bank has projected a real GDP growth of 2-3% for the current fiscal year 2024, indicating a positive economic outlook.

Business leaders in Pakistan have urged Prime Minister Shehbaz Sharif to initiate trade talks with India to enhance economic growth. During an hour-long meeting with the Karachi business community, concerns were raised regarding high energy costs, inconsistent government policies, and political instability as barriers to business growth. The business leaders proposed economic policies and highlighted the need for political stability to improve the economy. Prime Minister Sharif acknowledged the business leaders’ proposals and promised to invite businessmen from across the country to Islamabad for further discussions.

Pakistan’s Finance Minister Muhammad Aurangzeb has predicted positive economic developments in the ongoing fiscal year, including increased foreign exchange reserves and improved fiscal performance. The government is focused on reforms in the energy sector and privatizing loss-making enterprises. Pakistan has requested an IMF bailout package of $6-8 billion and the IMF has agreed to consider a larger, longer program. External buffers have deteriorated, but the government is implementing measures to reduce fiscal and current account deficits.