Islamabad, In a significant move towards economic stabilization, Pakistan’s government has rolled out its latest federal budget, focusing on sustainable and inclusive growth. This year’s budget highlights a robust strategy aimed at addressing systemic challenges across various sectors, improving fiscal management, and reducing inflationary pressures.
According to Lahore School of Economics, the budget prioritizes high-potential sectors such as IT, SMEs, mines and minerals, tourism, exports, and agriculture. These sectors are expected to significantly bolster the country’s balance of payments. The government is also enhancing efforts to attract foreign investments and maximize home remittances by extending comprehensive support to overseas Pakistanis.
Fiscal discipline is a key feature of this budget, with the government curtailing nonessential expenditures and implementing comprehensive reforms at the Federal Board of Revenue. The successful conclusion of the Stand-by Arrangement with the IMF paves the way for an extended stabilization program, underpinning the government’s commitment to financial self-sustainability.
The economic outlook for FY2024 shows a moderate recovery, with GDP growth recorded at 2.38 percent. The agricultural sector has been a major growth driver, achieving a 6.25 percent increase, the highest in the last 19 years, due to significant improvements in major crop outputs. Both the industrial and service sectors have also shown resilience, contributing to the overall economic stability.
The government’s consolidation efforts have kept the fiscal deficit manageable, with a primary surplus reported. The rupee has appreciated by nearly 3.0 percent, reflecting a stronger economic position. The current account deficit remains controlled, with a notable improvement in foreign exchange reserves, which stood at US$ 14.6 billion by the end of May 2024.
The release of the Pakistan Economic Survey 2023-24 coincides with these developments, offering a detailed review of the economic milestones achieved this year. The survey was compiled with contributions from key economic experts and government officials, highlighting the collective efforts towards economic recovery and stability.