Islamabad, June 9, 2025 – Finance Minister Mohammad Aurangzeb officially launched the Economic Survey for the fiscal year 2024-25, sharing encouraging news of a 2.68% GDP growth and a significant drop in inflation.
This year’s Survey paints a picture of cautious optimism, highlighting Pakistan’s gradual but steady economic recovery.
The Survey shows that Pakistan’s economy is slowly regaining momentum after years of instability. Compared to previous years, this year’s performance reflects a stronger and more stable outlook. The 2.68% GDP growth in FY2025 builds upon the progress made in FY2024, thanks to better management of both internal and external finances.
A key achievement this year is the sharp decline in inflation. According to the Survey, inflation fell from 20.7% in April 2024 to just 0.3% in April 2025. The average inflation rate from July 2024 to April 2025 stood at 4.7%, a major improvement from last year’s 26%. This reduction is credited to tough fiscal measures, tight monetary policy, efforts to stabilize the exchange rate, and targeted support for vulnerable segments.
Despite challenges in supply chains and production, investor confidence has returned. The Survey notes a 27.5% rise in new company registrations—an indicator of growing private sector interest. Government efforts to maintain fiscal discipline also paid off. The fiscal deficit dropped to 2.6% of GDP (from 3.7% last year), and the primary surplus doubled to 3.0%. Tax revenues reached Rs 9.3 trillion, marking a 26.3% increase.
On the external front, Aurangzeb highlighted a positive turnaround: the current account posted a US$ 1.9 billion surplus, reversing last year’s US$ 1.3 billion deficit. This shift is due to improved exports and record-high remittances from overseas Pakistanis. The IMF’s Extended Fund Facility and additional support under the Resilience and Sustainability Facility have also helped boost foreign investor confidence. Pakistan’s credit ratings have been upgraded by both Moody’s and Fitch.
With stronger economic fundamentals, the State Bank of Pakistan was able to reduce interest rates, supporting business growth and making borrowing easier. Continuous remittance inflows have helped families and added stability to the economy.
However, the Survey also points out that deep-rooted structural problems still need attention. Aurangzeb stressed the importance of reforming education, vocational training, and employment generation—especially for the country’s growing youth population. He also called for support to small businesses and efforts to reduce regional inequalities.
The digital economy is another promising area. Pakistan’s IT sector is growing fast, driven by a young and skilled workforce. But gaps in digital infrastructure, outdated regulations, and limited investment in tech skills are holding it back. Aurangzeb emphasized the need to bridge the digital divide, especially for women and rural areas.
In conclusion, the Survey underscores that while Pakistan is on the path to recovery, sustained progress will require long-term reforms. Under Aurangzeb’s leadership, policies like URAAN Pakistan aim to shift the focus toward investment-led and export-driven growth, setting the stage for a more inclusive and resilient future.