The latest economic indicators paint a promising picture for Pakistan’s economy in 2024.
Remittances, a vital source of foreign exchange, surged remarkably by 16.4 percent year-on-year in March 2024, reaching $3.0 billion compared to $2.5 billion in March 2023. Notably, remittances also saw a significant month-on-month increase of 31.3 percent from $2.3 billion in February 2024.
Foreign Direct Investment (FDI) flows recorded a substantial 89.4 percent upsurge, totaling US$258 million in March 2024, compared to US$136.3 million the previous month. This notable improvement in FDI inflows is credited to a conducive investment climate and reduced uncertainty.
Moreover, the State Bank of Pakistan (SBP) has maintained the policy rate at 22% since July 2024, ensuring stability in monetary policy. Over the period from July 1 to March 29, 2024, the money supply (M2) exhibited a growth of 5.9 percent, amounting to Rs1846.2 billion, showcasing a notable increase from the 4.4 percent growth recorded in the previous year, which amounted to Rs 1211.5 billion.
Additionally, the recent approval by the International Monetary Fund (IMF) Executive Board of the second review under the Stand By Arrangement (SBA) for Pakistan is a significant development, enabling an immediate disbursement of $1.1 billion and underscoring confidence in Pakistan’s economic trajectory.
