Pakistan Economic Survey 2024-25

Finance Minister Muhammad Aurangzeb presented the Pakistan Economic Survey 2024-25 on Monday.

It is a pre-budget document that gives a summary of the economic performance of the country during the current fiscal year and sets the stage for the federal budget to be announced tomorrow. 

Here is the sector wise complete breakdown of it.

Economic Growth & Recovery

• GDP growth improved from -0.2% in 2023 to 2.5% in 2024 and is projected at 2.7% for 2025.
  
• The government objects for gradual and sustainable growth to avoid the past boom and bust cycles.
  
• The global economic slowdown also impacts Pakistan so global GDP is expected to drop to 2.8% in 2025.
  

Inflation & Interest Rates

• Inflation (CPI) in Pakistan dropped from 29% in 2023 to 4.6% which aligns  with global trends.
  
• The policy interest rate was reduced from a record 22% to 11%
  

Debt & Foreign Reserves

• Public debt to GDP ratio improved from 68% to 65%.
  
• Foreign exchange reserves increased to $9.4 billion by June 2024 which is a big jump from near default levels last year.
  
• Efforts continue to reduce the burden of circular debt (Rs1.275 trillion) and restructure state owned enterprises (SOEs).
  

IMF & Structural Reforms

• Pakistan seeks a long-term IMF program (Extended Fund Facility) to ensure macroeconomic stability and implement deep structural reforms.
  
• The government emphasized the importance of changing the economic DNA through reforms.
  

Tax Collection & Digital Transformation

• Tax to GDP ratio hit a 5-year high with a 26% increase in revenue this year.
  
• Use of technology (AI audits, digital invoicing, faceless customs) helped expand the tax base.
  
• Individual tax filers doubled to 3.7 million and high-value filers increased by 178%.
  

Energy Sector Reforms

• Industrial and household electricity tariffs were reduced.
  
• Private sector boards were introduced in power companies to cut losses.

Privatisation & Government Restructuring

• The government plans to privatize 24 SOEs to reduce financial burden.
  
• Pension reforms will start from July 2025 with new government employees contributing directly.
  
• A plan is underway to rightsize 43 ministries and 400 departments.
  

Trade, Exports & Remittances

• Current account showed a $1.9bn surplus (compared to a $1.3bn deficit last year).
  
• Exports rose by 7% especially in the IT sector.
  
• Freelancers earned $400 million and remittances grew by 31% which reached up to $38 billion.
  
• Roshan Digital Accounts (RDA) crossed $10bn with over 814,000 accounts opened.
  

Banking & Debt Management

• Government reduced borrowing cost ad saved Rs800bn in debt servicing.
  
• Shift to Islamic banking is encouraged.
  
• Focus on long-term debt planning to reduce refinancing risks.
  

Industrial & Services Sector

• Industrial growth reached 4.8% up from -1.4% last year.
  
• Construction grew by 6.6% and the electricity/gas/water sectors also improved.
  
• Auto sector jumped by 40%, textiles by 2% and petroleum products by 4.5%.
  
• Services sector grew by 2.9% with IT/telecom showing 6.5% growth.
  

Agriculture & Development Spending

• Agriculture played a key role in economic stability.
  
• The government plans to increase farm productivity in the coming years.
  
• Annual National Development Programme (ANDP) set at Rs3,483bn:
  
  • Rs1,100bn for federal projects
    
  • Rs2,383bn for provincial initiatives
    

Fiscal Indicators

• Fiscal deficit fell to 2.6% of GDP.
  
• Primary balance recorded a surplus of 3%.
  
• Private sector received Rs681bn in credit during July 2024–May 2025.
  
• The survey also covers:
  
  • Education, health, IT, energy, transport
    
  • Climate change, social protection and infrastructure
    
  • Population growth, employment, trade trends
    

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