Islamabad: Positive indicators in Pakistan's economy, after years of political and economic insecurity, are taking the country towards a hope for return of economic stability following the general elections in February 2024. After the general elections on February 8th, the hardest challenge for the new government was the revival of the economy as the country was facing visible external economic pressure. According to Kuwait News Agency, the positive growth rate, increase in foreign reserves, substantial decline in inflation, and a stable exchange rate showcase vibrant visualization of the new government to build gains in the last 11 months. Joint Economic Adviser to the Prime Minister on Growth and Stabilization Dr. Imtiaz Ahmad, providing financial statistics, highlighted that economic indicators are positive in all sectors including the external, real estate, production, fiscal and stock market alongside a decline in inflation. He mentioned that Roshan Digital Account inflow from overseas Pakistanis incre ased to USD 9.1 billion till November 2024 from USD seven billion in November 2023, indicating trust in the government's policies by overseas Pakistanis. The Finance Ministry of Pakistan reported that the current account balance during July-November posted a surplus of USD 0.94 billion against a deficit of USD 1.67 billion in the same period in 2023, with exports increasing by three percent. Foreign direct investment (FDI) surged by 31.3 percent, workers' remittances grew by 34.6 percent, and GDP growth is estimated at 2.52 percent for fiscal year 2024, compared to -0.22 percent in FY 2023. Foreign exchange reserves rose to USD 16.3 billion on December 21, 2024, from USD 8.21 billion in February the same year. Around 12 sectors experienced positive growth, including food, tobacco, wearing apparel, textile, petroleum products, and automobiles. Specifically, for the July-November 2024 period, car production increased by 60.8 percent, fertilizer production rose by 11.1 percent, incorporation of registered comp anies grew by 13.1 percent, and tax collection increased by 23.3 percent. Fiscal balance saw a surplus at 0.4 percent of GDP from July-October 2024, compared to a deficit of 0.8 percent of GDP the previous year. Inflation significantly declined to 7.9 percent from 28.6 percent in the same period in 2023, aided by government relief and administrative measures to control price hikes. Following a challenging 2023, Pakistan's international partners are committed to supporting Islamabad's new efforts. The country established the Special Investment Facilitation Council (SIFC) under the Prime Minister to facilitate international investors and fast-track project development. Agreements with Saudi and Chinese businesses aim to boost various sectors, with MoUs worth billions already signed. During a high-level review meeting on the Board of Investment's progress, Prime Minister Shehbaz Sharif urged expedited completion of Business Facilitation Centers across Pakistan and development of a comprehensive roadmap for Bu siness to Business agreements with international investors. A team from the International Monetary Fund (IMF) visited Pakistan last November, where authorities reaffirmed their commitment to economic reforms supported by the 2024 Extended Fund Facility. Additionally, the Asian Development Bank approved a USD 200 million loan to modernize Pakistan's power distribution and improve electricity reliability. The government is striving to stabilize and grow the economy through international investments and export increases. As an agricultural nation, it has seen a five percent growth in the agriculture sector and achieved USD four billion in rice export revenue. IT exports rose to USD 3.2 billion in FY 2024, with a focus on reaching USD 25 billion in the next five years, particularly targeting GCC countries. A significant boost in the Pakistan Stock Exchange (PSX) is evident as the benchmark KSE-100 index surpassed 112,535 points, among the top-performing stock markets in 2024. Economic analysts attribute this u pward trend to positive economic indicators and a major interest rate cut to 13 percent. Finance Minister Muhammad Aurangzeb disclosed plans to enhance economic diversification, invest in key sectors like agriculture, manufacturing, and infrastructure, and pursue reforms to strengthen the financial system. The government's policies reflect a new approach to growth and development, focusing on international investments to stabilize the economy and pursuing structural reforms aligned with macroeconomic policies.
