A recent report from the Finance Ministry highlights the significance of prudent policies in driving sustainable economic recovery.
In February 2024, the economy saw positive indicators, including a notable increase in imports by 10.2 percent compared to the same period last year, reaching $4.3 billion.
This surge was attributed to the relaxation of import restrictions and exchange rate stability, facilitating the smooth flow of raw materials for export-oriented industries.
Additionally, Foreign Direct Investment (FDI) experienced an inflow of $131.2 million, contrasting with the previous month’s outflow of $173 million.
Remittances also demonstrated an upward trajectory, rising by 13.0 percent to $2.2 billion in February 2024, compared to $1.9 billion in February 2023.
The State Bank of Pakistan (SBP) maintained the policy rate at 22 percent on March 18, 2024, citing inflation risks and elevated inflation expectations.
Furthermore, the report highlights a significant growth in money supply (M2) during the fiscal year 2023-24, registering a 3.8 percent increase of Rs 1192.1 billion compared to the previous year’s 1.14 percent growth of Rs 313.9 billion.
Looking ahead, the report underscores the importance of continued fiscal consolidation and prudent policy measures to reinforce economic and financial stability. Efforts to sustain external inflows to meet gross financing needs and ensure external sector stability are deemed essential for maintaining the momentum of economic recovery.
