Pakistan’s economy has crossed the $410 billion mark for the first time, according to the National Economic Survey 2024-25. This is a major milestone, although the country still missed several important economic targets.
The industrial sector performed better than expected, growing by 4.8% compared to the target of 4.4%. However, the agriculture and services sectors fell short. Agriculture only grew by 0.6%, well below the 2% target. The services sector grew by 2.9%, missing its goal of 4.1%.
Overall, the country’s GDP growth was 2.7%, lower than the government’s 3.6% target. Despite slower growth, inflation was well under control. It remained at 5%, much lower than the 12% forecasted earlier in the year. This is a positive sign for the general public and economy.
The government collected Rs13,367 billion in revenue a 36.7% increase compared to last year. Indirect taxes, such as sales tax and customs duties, made up Rs8,393 billion of that total. The tax-to-GDP ratio also improved from 6% to 8%, showing better tax collection efficiency.
Still, some key crops didn’t perform well. Cotton, maize, and wheat production saw noticeable declines. On the other hand, sectors like construction and utilities showed strong growth and helped support the overall economy.
Finance Minister Muhammad Aurangzeb is expected to present the budget for 2025–26 on June 10. The government is currently in talks with the IMF, and upcoming fiscal decisions will be important for managing economic challenges and maintaining stability.
