ISLAMABAD, June 12 (Xinhua) -- Pakistan's economy has achieved macroeconomic stabilization in the outgoing fiscal year July 2023 to June 2024 through a combination of policy, structural, and administrative measures, said the country's Minister for Finance and Revenue Muhammad Aurangzeb here on Tuesday.
Aurangzeb released the report of the Economic Survey 2023-24 in Islamabad, saying that Pakistan's economy registered moderate recovery reflected by gross domestic product (GDP) growth of 2.38 percent against the previous year's contraction of 0.21 percent, more than the predictions by the international institutions.
"Agriculture emerged as a main driver of economic growth, registering a growth of 6.25 percent. The industrial and services sectors also showed resilience with each posting a growth of 1.21 percent," said the minister, adding that foreign exchange reserves were maintained at 14.6 billion U.S. dollars by the end of May 2024 coupled with the fiscal sector progressing towards stability.
During the fiscal year 2023-24, the country witnessed a contraction in GDP growth, skyrocketing inflation, a depreciating currency, and depleted foreign exchange reserves painting a bleak picture, according to the economic survey report, which was released a day before the presentation of the country's next year budget.
The International Monetary Fund's (IMF) Stand-By Arrangement (SBA) program focused on fiscal consolidation, gradual withdrawal of import restrictions, market-determined exchange rates, and reforms in energy, state-owned enterprises (SOEs), and governance, said the report, adding that the successful completion of the IMF program earned its acknowledgement of Pakistan's improved economic and financial position.
According to the report, the size of the country's economy increased by 11 percent to 375 billion dollars from 338 billion dollars recorded in the last year. The country's per capita income rose by 129 dollars to 1,680 dollars, driven by improved economic activity and Pakistani rupee appreciation.
The inflation fell from 38 percent in May 2023 to 11.8 percent in May 2024, a 30-month low, due to exchange rate stability, monetary tightening, fiscal consolidation, smooth food supply, and favorable global commodity prices.
The report highlighted that the Current Account Deficit narrowed by 95 percent to 0.2 billion dollars from 3.9 billion dollars last year, exports grew by 10.6 percent, and information technology (IT) exports increased by 21 percent to 2.6 billion dollars.
On the other hand, imports declined by 5.3 percent due to reduced imports of food, petroleum products, and cotton coupled with a 7.7 percent increase in remittances by overseas Pakistani workers.
The report added that Pakistan's economic recovery and stabilization have laid a strong foundation for sustained growth with future targets to continue fiscal consolidation by focusing on revenue-enhancing measures. ■
