Economic indicators improve on $3b IMF SBA

Pakistan’s economic indicators have significantly improved under the ongoing International Monetary Fund (IMF) Stand-By Arrangement (SBA) of $3 billion, suggesting that economic activities have stabilised and are ready to enter a growth phase ahead of the new loan package from the lender.

In its latest monthly update released on Thursday, Topline Research reported that the country’s key economic indicators, including the current account deficit (CAD), debt and liabilities, foreign exchange reserves, inflation reading, and rupee-dollar parity, improved in February 2024.

The report stated that Pakistan’s balance of the current account turned positive in February 2024, settling at a surplus of $128 million for the month compared to a deficit of $303 million in the previous month, January 2024.

Accordingly, the CAD for the first eight months (Jul-Feb) of the current fiscal year reduced to $999 million compared to $3.85 billion in the same period of the last year.

Similarly, Pakistan’s total debt and liabilities as a percentage of GDP stood at 85.3% in the second quarter of FY24, down from 90.38% in the last quarter of FY23.