ISLAMABAD: The Ministry of Finance Pakistan has released its monthly economic outlook report, presenting a mixed picture of the country’s macroeconomic performance, with several indicators showing improvement while others remain under pressure.
According to the report, the State Bank of Pakistan has set the policy interest rate at 11.5%, reflecting its latest monetary stance. Non-tax revenue recorded a 7.7% increase, indicating improved government income from non-tax sources.
Remittances from overseas Pakistanis showed strong growth, rising by 8.2% to $30.3 billion during July to March, highlighting continued support from the diaspora.
The report noted a historic surge in the stock market, with the Pakistan Stock Exchange index reaching an all-time high of 165,823 points. Market capitalization also increased significantly by 44.3%, reaching Rs 18.34 trillion.
On the revenue side, the Federal Board of Revenue collected Rs 9,305 billion during July to February, marking an increase of more than 10%.
Foreign exchange reserves improved to $20.6 billion, including $15.1 billion held by the central bank. Meanwhile, the rupee remained stable at Rs 278.80 against the US dollar in the interbank market.
However, the report highlighted challenges on the external front. Exports declined by 5.8% to $23.3 billion, while imports rose by 7.9% to $46.8 billion, widening the trade gap. Foreign direct investment also fell sharply by 27%, dropping to $1.35 billion.
Inflation stood at 7.3% in March, while large-scale manufacturing grew by 5.9%. Agricultural credit increased by 14.4%, and company registrations rose by 22.7%, indicating some underlying business activity.
The report further stated that the primary balance improved significantly to Rs 4,319 billion. However, analysts cautioned that declining exports and reduced foreign investment could pose challenges for future economic stability.
