Tag Archives: Economic Growth

Overseas Pakistani Remittances Near $3 Billion for the Fourth Consecutive Month In a remarkable display of financial support, overseas Pakistanis sent $2.943 billion in remittances during August 2024, marking a 40% increase compared to the same month last year when the inflow was recorded at $2.094 billion. This significant rise in remittances underscores the continued dedication of expatriate Pakistanis to …

Merchandise Exports Show Strong Growth in August Pakistan’s merchandise exports increased nearly 16% to $2.74 billion in August 2024, compared to $2.36 billion in the same month last year, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday. The growth momentum picked up in August due to improved international orders and exchange rate stability. On a …

The central government debt of Pakistan surged by Rs8.07 trillion, or 13%, during the previous fiscal year, bringing the total debt to a staggering Rs68.9 trillion by the end of June 2024, according to data released by the State Bank of Pakistan (SBP) on Thursday. The significant rise in debt highlights the growing financial challenges faced by the government and …

Fiscal Deficit Forecast The finance ministry has projected a substantial increase in Pakistan’s fiscal deficit, estimating it could reach Rs9.655 trillion in the upcoming fiscal year. This projection reflects ongoing concerns about managing public finances amid rising debt obligations. Economic Growth and Inflation Despite the deficit projection, the finance ministry anticipates economic growth to rise by 4.8% during the fiscal …

Challenges Facing Middle-Income Countries The ‘World Development Report 2024’ highlights the significant challenges middle-income countries face as they strive to transition to high-income status. Rising debt, aging populations, protectionism in advanced economies, and the pressures of accelerating the energy transition are key obstacles. Current Status and Aspirations There are currently 108 countries classified as middle-income, many of which aspire to …

The Pakistan Business Forum (PBF) has addressed a letter to Prime Minister Shehbaz Sharif, urging the development of a comprehensive long-term export strategy to support Pakistan’s economic growth. PBF President Khawaja Mehboobur Rehman highlighted the need for policy consistency and parliamentary endorsement to ensure stability and foster confidence among businesses, investors, and trade partners. Need for Policy Consistency The PBF …

As of June 2024, Pakistan’s public and publicly guaranteed debt has soared to an unprecedented Rs74.6 trillion. This dramatic increase of Rs8.2 trillion, or 12.3%, from the previous fiscal year has pushed the debt-to-GDP ratio to a concerning 70.5%. This figure significantly surpasses the statutory limit of 57.5% set by the Debt Limitation Act, signaling potential trouble for the nation’s …

On Wednesday, Jameel Ahmad, the Governor of Pakistan’s central bank, addressed the National Assembly Standing Committee on Finance, providing a mixed outlook for the country’s economy. Ahmad projected that inflation might surge in the coming months due to recent budgetary measures, rising energy prices, and ongoing geopolitical tensions in the Middle East. Despite these challenges, he assured that the foreign …

Mohammad Younas Dagha, Chairman of the Policy Research and Advisory Council (PRAC), has called on the State Bank of Pakistan (SBP) to reduce its policy rate from 19.5% to 17.5%. This proposed adjustment aims to keep the real interest rate positive, aligning with the International Monetary Fund’s (IMF) requirements and fostering economic growth. In a press release issued by PRAC, …

Federal Finance Minister Mohammad Aurangzeb recently suggested that there may be opportunities for further reductions in interest rates. Speaking at an event hosted by the Karachi Chamber of Commerce, Aurangzeb emphasized the crucial role of effective macroeconomic governance in fostering economic growth. He noted that structural issues in the economy often lead to balance of payment problems, particularly as growth …