Pakistan's economy shows stability as FY24 nears end: Economic report

May 29, 2024 (MLN): As the fiscal year (FY24) draws to a close, economic indicators suggest a strengthening of stability in Pakistan's real, fiscal, and external sectors, as outlined in the Finance Ministry's monthly economic report.

GDP growth is elevating while inflation rates are on a decline with a positive primary balance, reflecting the effectiveness of recent fiscal consolidation efforts.

The economic performance also reveals that agriculture has been a major contributor to this fiscal year's economic upswing, attributed to government-led initiatives that enhanced input supply and credit disbursements.

The LSM sector experienced a slight contraction but has shown improvement compared to the previous year.

Fiscal measures have boosted both tax and non-tax revenues, helping maintain a stable fiscal deficit, while improvement in the current account balance highlights a healthier external sector driven by better trade balances and increased foreign direct investment.

The economic outlook is promising as industrial activities are gradually improving, inflation is on a downward trajectory and the external sector is stable.

Going forward, the economy will gain momentum in the coming months of this fiscal year.

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