The Finance Ministry has unveiled the economic performance report for the first half of the fiscal year, highlighting improvements in remittances, exports, investments, and foreign exchange reserves, along with a substantial decline in inflation and interest rates.
According to the report, remittances surged by 32.8% during the first six months, reaching $17.46 billion. Exports also increased by 7.2% to $16.22 billion, while imports rose by 9.3%, amounting to $27.74 billion. Despite the rise in imports, the current account recorded a surplus of $1.21 billion, reflecting prudent fiscal management.
Foreign direct investment (FDI) climbed by 19.9%, reaching $1.32 billion, while total investments grew by 5.8%, hitting a record $1.24 billion. The State Bank of Pakistan's foreign exchange reserves saw a notable increase, rising from $8.58 billion to $11.44 billion. Meanwhile, the dollar exchange rate dropped from Rs280.10 to Rs278.71.
Tax and non-tax revenue
Tax revenue collection for the first five months of the fiscal year increased by 25.9%, with Rs5,625 billion collected from July to November. Non-tax revenue also witnessed a massive growth of 94.5%, reaching a record Rs3,418 billion.
Decline in inflation and interest rates
The report highlighted a sharp decline in inflation, which dropped from 29.7% to 4.1% over six months. Similarly, the interest rate was reduced from 22% to 12%.
Sectoral and stock market performance
Agricultural credit provision grew by 8.5%, reaching Rs925.7 billion, while loans to the private sector exceeded Rs1,632 billion. However, the performance of major industries was recorded at -1.25%. Despite this, the stock market experienced a remarkable 77.2% increase, closing at a record 114,880 points.
Increase in business registration
Business activity showed positive momentum, with the registration of new companies rising by 17.2%. A total of 16,510 new companies were registered during the first half of the year.
Fiscal discipline
The fiscal deficit remained at Rs43.5 billion, while the primary balance recorded a surplus of Rs3,350 billion, reflecting the government’s efforts to maintain fiscal discipline.
