Pakistan’s National Accounts Committee (NAC) has reported a 0.92% growth in GDP for the first quarter of the fiscal year 2024-25. The agricultural sector saw a modest increase of 1.15%, though key crops such as cotton, maize, rice, and sugarcane experienced significant declines in production. Meanwhile, the industrial sector contracted by 1.03%, while the services sector grew by 1.43%.
For the fiscal year 2024, the GDP growth rate has been slightly adjusted downward to 2.5%. On a positive note, the Pakistan Bureau of Statistics (PBS) revealed that inflation dropped to 4.1% in December 2024, marking the lowest level in six years. Food price inflation also saw a sharp decline, standing at just 0.3% compared to the previous year.
Exports showed promising growth, rising by 10.52% in the first quarter to reach $16.6 billion. However, imports also increased by 6.1%, pushing the trade deficit to $11.2 billion. In December 2024 alone, imports surged by 14%, causing the trade deficit to widen by 46.6%.
In a significant development, the United Arab Emirates (UAE) has extended the repayment period for a $2 billion loan provided to Pakistan. This decision followed a meeting between Prime Minister Shehbaz Sharif and UAE President Sheikh Mohamed bin Zayed Al Nahyan, aimed at bolstering Pakistan’s economic stability.
Prime Minister Shehbaz Sharif also unveiled a new five-year economic and social development plan, titled *Uraan Pakistan*, on December 31, 2024. The plan focuses on five key areas: boosting exports, accelerating digital transformation, ensuring social justice, promoting environmental protection, and improving energy and infrastructure sectors. The ambitious goal is to triple Pakistan’s GDP to $1 trillion within a decade and reach $3 trillion by 2047.
These measures represent crucial steps toward improving Pakistan’s economic landscape, offering hope for renewed growth and stability in the years ahead.
