Pakistan’s Economy slowly recovers, Inflation to stay around 5

ISLAMABAD: Pakistan’s Finance Ministry has released its monthly economic report, offering a cautiously positive outlook on the country’s economy.

The report predicts that inflation is likely to stay between 5 and 6 percent in the coming month. Officials, however, warned that rising food prices and challenges in agricultural output could temporarily push inflation higher.

Signs of Economic Recovery:

The overall economic situation is showing gradual improvement. Industrial activity is picking up, and key sectors are experiencing a steady recovery. Ongoing economic reforms are starting to deliver results, helping stabilize the economy.

In agriculture, the crop outlook is mixed, but the availability of necessary inputs is expected to improve conditions soon. Government support measures are also likely to strengthen supply chains, while the upcoming Rabi season may help stabilize agricultural production—a crucial factor for food security.

Other Positive Indicators:

Structural reforms, fiscal discipline, and better revenue collection are supporting gradual stabilization.
Remittances are rising, improving Pakistan’s external position.
Growth in major productive sectors and IT exports is helping maintain economic momentum.

Public debt fell by Rs 1,371 billion between July and September—the first notable quarterly drop in five years—mainly due to early repayments of expensive loans.

The Outlook Ahead:

The Finance Ministry emphasized that Pakistan’s strategy for economic stabilization is working, but continued reforms and careful management of expenditures are essential to sustain progress.

Overall, while caution is advised, the report reflects a slow but steady recovery in the country’s economy.