Country’s economy continues to show positive developments: Finance Ministry

ISLAMABAD: The Ministry of Finance reports that the country’s economy has continued to show positive momentum during the first seven months of the current fiscal year.

In its monthly economic outlook, the ministry highlighted that a sharp decline in inflation has contributed to a stable financial environment, allowing the central bank to gradually lower the policy rate. Investor confidence is reflected in the strong performance of the Pakistan Stock Exchange.

According to the report, total revenues during the first six months of the fiscal year grew by 42.5% to 9,763.8 billion rupees, compared to 6,854 billion rupees in the same period last year.

The external sector has seen significant improvement, driven by sustained growth in exports and workers’ remittances, despite rising imports.Finance Minister Attends Prince Aga Khan IV’s Funeral in Lisbon

During the first seven months of the fiscal year, the current account recorded a surplus of 682 million dollars, in contrast to a deficit of 1,801 million dollars in the previous year. Exports of goods increased by 7.6% over this period.

Workers’ remittances saw a strong inflow of 20.8 billion dollars, marking a 31.7% rise from 15.8 billion dollars last year. Net Foreign Direct Investment (FDI) inflows reached 1,523.6 million dollars, reflecting a 56.2% increase compared to the previous year.

The primary surplus is expected to improve further in the coming months.

As of February 14 this year, Pakistan’s total liquid foreign exchange reserves stood at 15.9 billion dollars, with the State Bank of Pakistan holding 11.2 billion dollars in reserves.

Inflation is projected to remain within the range of 2-3% this month.