ISLAMABAD: Pakistan’s Ministry of Finance has stated its latest monthly economic outlook, which presents a blend of positive and challenging trends within the economy.
The report indicates noteworthy increases in several key areas: remittances, exports, imports, and tax revenue, all of which signal potential growth for the economy. Specifically, remittances surged by 32.5% from July to February, while exports were up by 7.2% and imports rose by 11.4% throughout the current fiscal year. Additionally, the current account deficit has narrowed.
Despite these positive indicators, the outlook also raises concerns about rising inflation. It is projected to escalate by 1-1.5% in March and by 2-3% in April. The cost of essential goods, including chicken, dairy products, and vegetable oil, saw increases in February, contributing to an overall inflation rate that jumped from 8.2% to 9.7%.
On the production side, large-scale manufacturing faced a setback, with output declining by 1.78% from July to February. In terms of investment, while there was a notable year-on-year increase of 11.8% in foreign investment, it experienced a steep drop of 67.5% in February alone. Additionally, the Pakistani rupee experienced a slight depreciation.
Overall, the Ministry’s report reflects a mixed economic landscape, with encouraging signs in certain sectors overshadowed by inflationary pressures and manufacturing challenges.
