Fri. Jun 14th, 2024
Economic survey reveals Pakistan’s economy projected to grow by 2.4% in fiscal year 2024

Pakistan’s economy is showing signs of improvement, with a projected growth rate of 2.4% in the current fiscal year. This is a significant improvement from the previous year’s contraction of 0.17%. The government’s economic survey revealed this information just before the federal budget announcement, which aligns with the State Bank of Pakistan’s projection for the full year.

To stimulate economic growth, the SBP recently lowered its key interest rate by 150 basis points, marking its first rate cut in almost four years. In addition to this, Pakistan’s current account deficit has also seen a notable improvement, narrowing by 95% to $200 million in the July to April period of the current fiscal year from $3.9 billion in the same period a year earlier. The Finance Minister mentioned that the current account recorded surpluses for three consecutive months until April, with the possibility of another surplus in May.

Pakistan is engaged in discussions with the IMF for a potential loan ranging from $6 billion to $8 billion to prevent a default in an economy that is growing at a sluggish pace compared to its regional peers. Prime Minister Shehbaz Sharif has emphasized the need for tough reforms to secure the IMF loan, though challenges such as high prices, unemployment, and a lack of new job opportunities have put pressure on the coalition government. Sharif’s administration has pledged commitment to implementing necessary reforms to address these issues and achieve an economic expansion of 3.6% in the upcoming fiscal year as economic activity picks up.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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