Pakistan Sees Record Growth in Remittances, Boosting Economic Outlook
The Ministry of Finance has presented a monthly economic outlook report based on the economic performance of the current fiscal year, which mentions positive trends in various economic indicators as well as some challenges.
According to the report, there was an improvement in remittances, exports, imports, financial reserves, revenues, and non-tax income, but there was a decline in foreign investment and industrial production.
According to the report, remittances to Pakistan increased by 28.8 percent during the first 11 months of the fiscal year 2024-25, reaching about $35 billion, up from $27 billion in the previous year.
According to the Ministry of Finance, this increase helped keep the current account deficit under control.
At the same time, exports increased on an annual basis but saw a decline every month. Exports reached $2.4 billion in May 2025,
while in May 2024, this amount was more than $3 billion. In contrast, imports recorded an increase of 11.5%.
The report also stated that foreign investment declined by 14.4%, which experts attribute to economic uncertainty, interest rate fluctuations, and political factors.
At the same time, FBR revenues increased significantly by 25.9%, and non-tax revenues saw a remarkable improvement of 68.1%.
The fiscal deficit decreased, and the primary balance remained in surplus, which, according to the Ministry of Finance, reflects discipline in the economy.
The inflation rate also decreased to some extent, and according to the report, the average inflation rate in the 11 months of the current fiscal year was 4.6%.
In the industrial sector, the output of large-scale industries (LSM) recorded a decline of 1.52 percent, indicating a slowdown in industrial growth.
Regarding interest rates, the report said that the policy rate has come down from 20.5 percent to 11 percent, which is expected to reduce business costs and improve investment.
Although the rupee has depreciated by 5.3 percent compared to the previous fiscal year, the impact of this may be reflected in import prices and inflation.
According to the Ministry of Finance, the government is continuing to take comprehensive measures for economic stability, sustainable growth, and fiscal discipline, and further improvement in economic activity is expected in the coming months.
