26/07/2025
Following years of unrelenting economic crises, including exceptionally high inflation and debilitating unemployment, Pakistan’s economy has achieved the long-awaited milestone of stability. The macroeconomic data for the fiscal year 2024-25 serves as evidence that the policies implemented over the last two years have yielded the desired outcomes. Inflation has decreased to 3.2 per cent from 38pc in May 2023, despite a fuel price increase. The fiscal year 2025 concluded with a $2.1 billion current account surplus, marking a significant turnaround that has contributed to the stabilisation of the external sector and exchange rate. Exports have increased by nearly 5pc, while remittances have reached a record $38.3bn, representing a 27pc year-on-year growth. Furthermore, external debt management has eased the liquidity crisis. Although stabilisation, achieved at the expense of economic activity, is not the ultimate objective and is, in fact, not unprecedented for Pakistan, having occurred previously on multiple occasions.
