FY25 | Pakistan

ISLAMABAD: The Large-Scale Manufacturing (LSM) sector recorded a contraction of 0.74 per cent in the outgoing FY25 compared to the previous fiscal year, falling short of the growth target of 3.5pc, according to data released by the Pakistan Bureau of Statistics on Friday. The LSM, which contributes around 8pc to the national GDP, had contracted by 0.03pc in FY24, following a growth of 0.92pc in the preceding year. In June 2025, LSM posted a 4.14pc year-on-year (YoY) growth, the fourth consecutive month of positive growth, mainly due to a reduction in the key interest rate to 11pc earlier in the fiscal year. However, on a month-on-month (MoM) basis, LSM showed a decline of 3.67pc in June. The food sector, a significant component of LSM, declined by 1.83pc YoY in FY25. However, wheat and rice milling experienced a 6.38pc rise, while starch production rose 0.59pc. Vegetable ghee production dropped by 0.94pc, cooking oil by 0.33pc, and tea by 2.76pc. Food, steel and energy weigh, while automobiles and textiles sh...

ISLAMABAD: Pakistan’s trade deficit with nine neighbouring countries expanded by 29.42 per cent in FY25, rising to $12.297 billion compared to $9.502bn in the preceding year. Exports registered notable growth to Bangladesh, Afghanistan, and Sri Lanka, largely attributed to recent shifts in the regional political landscape. However, trade relations with these countries have remained strained in recent years, primarily due to challenges stemming from restrictive government policies. Despite the uptick in exports, the overall trade gap with regional partners widened, driven predominantly by increased imports from China, India, and Bangladesh during the months under review. In FY24, the trade deficit with these countries was $9.506bn, up 49pc from $6.382bn in the preceding year. Pakistan’s exports to Afghanistan, Bangladesh and Sri Lanka saw a hefty growth in July-June FY25. Still, exports to other countries, especially China, continued to decline during the period, according to data compiled by the State Bank of...

KARACHI: Foreign exchange companies contributed around $450 million to remittance inflows during June, taking their total contribution to approximately $5 billion in FY25, according to the Exchange Companies Association of Pakistan (ECAP). “We sold about $450m to banks in June, highlighting our growing role in supporting the country’s exchange rate stability,” said Zafar Paracha, Secretary General of ECAP. Exchange companies have welcomed the State Bank of Pakistan’s (SBP) recent decision to include them in the Pakistan Remittance Initiative (PRI). For years, these companies have demanded similar incentives to those offered to banks, arguing that they also play a crucial role in channelling remittances. “This incentive will certainly boost remittance inflows through exchange companies, and I believe FY26 could witness a new record,” Mr Paracha said. He estimated the total remittances handled by exchange firms during FY25 to be around $5bn, although he noted the figure is not yet officially confirmed. The SBP ...

Exports rise nearly 30% in FY25 but domestic despatches fall for second consecutive year

Finance Minister Muhammad Aurangzeb unveiled the Pakistan Economic Survey 2024-25 on Monday, exuding confidence that the country’s economy would be able to post growth of 2.7 per cent in the outgoing fiscal year for the gross domestic product (GDP). The National Accounts Committee showed Pakistan’s GDP growth at 1.37pc for the first quarter of FY25, 1.53pc for the second, and 2.4 for the third. This implies that the economy would need to post a growth rate of 5.5pc in the three months of April-June to get to the 2.7pc figure announced by the finance minister. The GDP growth figure, however, is still lower than 3.6pc, marking the third successive year of the government missing its targeted figure. View this post on Instagram Highlights from PES 2024-25 Growth targets missed with only industrial sector slightly above target Per capita income increases to $1,824 from $1,662 Current account balance notches surplus of $1.9bn from July to April compared to $1.3bn deficit last year Inflation drops to 4.7pc from targ...

The government on Monday released the Pakistan Economic Survey 2024-25, revealing key figures for the fiscal year ending June. Key among them was the economy expanding by 2.7 per cent during the outgoing year. The government had initially targeted a GDP (gross domestic product) growth at 3.6pc, but lowered it last month. The International Monetary Fund expects real GDP to grow by 2.6pc in FY25 and for the economy to grow 3.6pc in FY26. In his foreword to the survey — a key pre-budget document — Finance Minister Muhammad Aurangzeb said Pakistan’s economy had been globally acknowledged for achieving macroeconomic stabilisation in the outgoing fiscal year. Pakistan is consistently advancing on an upward trajectory, built upon investment-friendly reforms, enhanced domestic savings, and increased foreign direct investment, with GDP growth projected at 5.7pc over the medium term, he said. Dawn.com spoke to analysts regarding their take on the economic survey, particularly concerning four things: the GDP growth rate...

• GDP expands at 2.6pc, per capita income sees modest rise to $1,824 • Economy size swells to $411bn, agriculture grows just 0.56pc and LSM contracts 1.5pc ISLAMABAD: Pakistan’s gross domestic product (GDP) and per capita income increased in dollar terms at a modest pace in 2024-25, reflecting a sustained recovery in the country’s overall output compared to the previous year, the government said on Tuesday. It was announced on Tuesday that the country’s economy is expected to grow by 2.68 per cent in the current fiscal year, a revision from earlier projections of 3.6pc, suggesting that Pakistan will fall short of its GDP target. The leading global financial institutions’ estimates also show that Pakistan’s economy is expected to grow between 2.6 and 2.8pc in FY25, a slower-than-expected recovery with challenges in agriculture, industrial output, and external financing weighing on economic momentum. The lenders have already revised downward their earlier GDP projections for Pakistan. The IMF revised the growth...