Pakistan’s macro indicators signal recovery

Pakistan’s recent economic gains, driven by strategic fiscal policies, robust remittances, and stable exports, signal a promising foundation for sustained growth and investor confidence, reports WealthPK.

As highlighted in the State Bank of Pakistan (SBP) Governor’s Annual Report for 2023-24, the current account deficit (CAD) has reached a 13-year low, decreasing by a significant 79% from the previous fiscal year, from $3.275 billion in FY23 to $681 million in FY24.

This improvement reflects the success of Pakistan’s policies and global demand trends, positioning the economy for sustained growth. The SBP’s report credits fiscal and trade policies for bolstering economic health, supported by remittances that serve as a crucial buffer against the external debt obligations.

Exports, particularly in food commodities like rice, have grown strongly due to global demand spikes and India’s export restrictions. This favorable environment has stabilized the economy and boosted the overall economic sentiment.