Finance Ministry’s claim of improvement in economic growth rate and reduction in inflation
Monthly Economic Update Outlook report of Pakistani economy has been released
The Finance Ministry claimed improvement in economic growth rate and reduction in inflation. According to the monthly economic update outlook report of the Pakistani economy, inflation is between 18.5% and 19.5% this month, while inflation is expected to further decrease to 17.5% in May 2024. The growth rate in the first and second quarter was 2.5 percent and 1 percent respectively.
In the report, the payment of external loans, heavy interest has been declared as a big challenge for the financial situation. According to the Ministry of Finance, the financial deficit has increased by 34.8% to 3224 billion rupees in 8 months. Financial discipline must be ensured for sustainable economic development.
According to the Ministry of Finance, economic growth will be moderate this year and will be better next year. In the first 9 months of the financial year, the financial and external sectors have improved. In the first half of the year, the agricultural sector has improved by 5 to 8.6%. Compared to the target, it was unsatisfactory.
According to the report, tax revenue in 8 months increased by 30% to 6 thousand 711 billion rupees, non-tax revenue doubled to 2267 billion rupees, exports increased by 9.3% to 23 billion dollars in 9 months. Remittances increased by 0.9% to 21 billion dollars.
During this period, imports were recorded at 38.8 billion dollars with a decrease of 8%, current account deficit was recorded as 500 million dollars with a decrease of 87.5%, direct investment was 1 billion 90 million dollars with a decrease of 9.7%. Foreign exchange reserves exceeded 8 billion dollars, exchange rate exceeded 278 rupees.
According to the Ministry of Finance, reduction in development expenditure, improvement in primary surplus, 33.6% increase in agricultural loans, the volume was recorded at 1434 billion rupees, 54% decrease in credit provision to the private sector, only 88.6 billion rupees were issued, the report came. MF’s second economic assessment and the approval of the final installment of $1.1 billion are welcomed, while the boom in the stock market is a sign of the restoration of investor confidence.