The Special Investment Facility Council (SIFC) has been actively shaping Pakistan’s economic landscape through policy initiatives, yielding positive outcomes as evidenced by recent reports from the Asian Development Bank (ADB), State Bank of Pakistan (SBP), and the Bureau of Statistics Pakistan.
Despite persistent inflation attributed to historical policy shortcomings and unforeseen calamities, the economic trajectory in Pakistan has shown improvement compared to the previous year, marked by the stability of the Pakistani rupee against the dollar and an upward trend in the Pakistan Stock Exchange, as noted by the ADB.
The SBP anticipates a GDP growth rate between two to three percent, largely driven by robust performance in the agricultural sector. Notably, the agricultural sector witnessed over 7% growth during the fiscal year 2024, buoyed by increased production in wheat, rice, corn, and cotton crops, according to the SBP.
Furthermore, a surge in remittances from Pakistanis abroad has bolstered the current account, resulting in a $619 million increase. This has contributed to a significant reduction in the current account deficit, shrinking by 87.5% to $0.5 billion during the fiscal year 2024 compared to the previous year.
Despite a $1 billion Eurobond repayment, prudent management has enabled the State Bank to maintain foreign exchange reserves at $8 billion, acknowledging resilience amidst fiscal challenges.
