The Minister of Finance, Muhammad Aurengzeb, presented on Monday the economic survey of Pakistan 2024-25, a document prior to the budget that contains details of the main socio-economic achievements during the outgoing fiscal year.
The survey serves as a vital document before the annual federal budget that will be presented tomorrow (Tuesday), offering detailed ideas about the country’s socioeconomic performance during the outgoing fiscal year.
Speaking during a press conference in Islamabad, the Minister of Finance talked about world economic perspectives, noting that it is estimated that global GDP growth will decrease to 2.8PC in 2025 from 3.5PC two years ago.
“Our recovery must be considered in a global context,” he said.
Aurengzeb said that the growth of Pakistan’s GDP in 2023 was -0.2pc, which increased to 2.5pc in 2024. “This year, we announced a 2.7PC growth by 2025. This is a gradual recovery and the correct way to do so is to focus on sustainable growth.
“The last thing we want is to go through another round of boom and bust cycles,” Aurangzeb emphasized.
Inflation, he said, had been a fantastic story for Pakistan: 6.8pc of global inflation in 2023, 5.7pc in 2024 and the estimate by 2025 is 4.3pc in terms of IPC inflation.
Aurengzeb said that the consumer price index (ICC) had crossed 29 percent in 2023, but now had plunged to only 4.6pc. “So, I think we have moved in the right direction in terms of global figures.”
When heading to the country’s monetary policy, the Minister of Finance recalled that the interest rate was in a 22 percent record in 2023, after which “steps” were taken to reduce it, and now the key policy rate was at 1,100 basic points, he said.
Speaking of macroeconomic indicators, Aurengzeb said: “The ratio of public debt and debt / GDP was 68pc, which is now 65pc.
“Forex reserves as of June 30, 2024 were $ 9.4 billion, which was a huge and remarkable recovery where we were back in 2023, where we were two weeks of import coverage. Recovery later [June] 30 continued and consolidated it in 2024-25.
Speaking about the loan of the International Monetary Fund (IMF), Aurengzeb said: “Our credibility and trust were restored by the leadership of Prime Minister Shehbaz Sharif.”
By pointing out that the prime minister had signed the Stand-By (SBA) agreement before the caregiver’s administration took over, the minister also praised the efforts of the caregiver’s finance minister, Dr. Shamshad Mirza, since his “discipline allowed us to continue.”
Aurengzeb highlighted two reasons for Pakistan to want an extended background installation with the IMF, with the first with the objective of “bringing permanence to macroeconomic stability” and eliminating fragility.
The second reason, he added, was to continue with structural reforms. “We needed to fundamentally change the DNA of the economy, and for that, we needed structural reforms that were elusive in this country. We needed to proceed with a structured program,” he said.
On the issue of income, Aurengzeb said: “Our PCD tax has reached a maximum of five years and the prime minister is leading this personally. All this transformation is around people, processes and technology.
“The technology played an important role: digital billing, production monitoring, artificial intelligence audits, faceless customs regime,” he added, describing progress in the 2014-25 fiscal year.
“Any transformation takes two to three years, and I think we have done a good job in terms of where we wanted to take things,” said the minister, added that the recoveries in the energy sector had been “notable.”
Aurengzeb then stressed that industrial and domestic energy tariffs had been cut, while private sector and professionals were introduced for energy distribution companies.
“Distribution losses will be reduced in the future,” he added, noting that the National Transmission and Exhibition Company (NTDC) that is distributed to three companies was an important step to reduce the bottleneck in the transmission.
The finance minister said that resolving the circular debt of RS1.275r “would play an important role.”
“They have spoken extensively of soes (state companies), and RS800BN has been spent, if adds actions and guarantees, this enters the billion. Those billion are better spent elsewhere,” he said.
Speaking about the government’s decision to privatize 24 SOES, Aurengzeb said that it was “completed with renewed vigor and energy next year under the advisor of the prime minister, Mohammad Ali.”
“The debt service is the largest expense for the Federation. In the last year, the policy rate fell and saved RS800bn in the debt service costs,” said finance minister, adding that he would address it in detail tomorrow.
In pension reforms, the minister declared that contributions should be defined for new government colleagues that join as of July 2024.
“Our biggest step is to stop bleeding and then solve inherited problems. But if we do not stop leaks, it will be very difficult for us to start addressing inherited problems,” he emphasized.
By detaching the light on the government’s continuous rights efforts, Aurengzeb said that “forty -three ministries and 400 departments attached” would face the reduction.
“That is not [about] the one that and why the federal government has to be sent. The question is how, “he said, adding that” they will continue with five ministries at the same time. “
Then, the Minister of Finance invited the ministries and the leaders of their departments to give their opinion on the matter, including “why an apartment is so critical for the functioning of the government.”
Speaking about Pakistan’s current account deficit, Aurengzeb observed that there was a surplus of $ 1.9 billion from July 2024 to April 2025 compared to a $ 1.3 billion deficit last year.
“All this year will be completed with a surplus,” he said.
The minister described the increase of 7PC in exports, especially in the IT sector as a “great jump”, adding that the money earned by independent workers was about $ 400 million.
He also noted that imports had increased by 12 percent, with non -oil imports almost at the same level as in 2022, which according to him was “a moment before the country’s economic crisis.”
While the minister said that imports of machinery and transport had increased to 16.5 percent and 24 percent, respectively, said that this would help the agricultural sector, where cotton was being imported.
“Remittances, such as inflation, have been an outstanding story,” said Aurengzeb. “You can see an increase of 31pc year after year of $ 31 billion and a record of $ 4.1 billion in March. When we close June, we hope that our general remittances are $ 37-38 billion,” he added, noting that the figure was $ 10 billion less than two years ago.
“It is very critical that we mention the impulse of Roshan’s digital account (RDA) because that is a directed investment and lifestyle,” said the Chief of Finance.
The minister called RDAs a “different segment of our diaspora”, with tickets that crossed $ 10 billion and 814,000 accounts.
“When we talk about remittances, we sometimes forget RDA, who is playing a very important role in terms of how we take our diaspora and its commitment to Pakistan,” he emphasized.
The minister pointed out that there was an increase of 26pc in terms of revenue collection, “to the back of the 30 percent growth in income last year.”
“There has been a deepening and expansion of the tax base,” said Aurengzeb.
“Individual archivators doubled to 3.7 million files. High value filing archivators also increased by 178 %,” he said, remembering that there were 74 % of additional retail records in the last fiscal year.
Speaking about debt management, Aurengzeb said the government had “recovered RS1TR in local debt due to two reasons.”
“We reduced the prices and money that enters Marcos,” he said, adding that the second reason was to give a signal to the banking system that the government “was no longer a desperate borrower.”
“We will borrow, but in our terms. It is time for him to begin to lend to the private sector. This was an important message for banks and can see the increase,” said the minister.
Aurengzeb further highlighted the change from the banking sector to Islamic banking. “The average maturity time has increased by 66pc, so the risk of refinancing is reduced as much as it can be and to avoid grouping around maturities. We want to keep this at 65pc,” he said.
Fiscal findings
According to the Annual Plan Coordination Committee (APCC), whose recommendations were backed by the National Economic Council (NEC), the Gross Domestic Product Growth Rate (GDP) of Pakistan for fiscal year 2024–25 has been recorded at 2.7 percent, while the objective of the growth of the PCD in the next fiscal year has been established in 4.2pc.
The NEC also pointed out that remittances witnessed a strong increase of 30.9pc from July 2024 to April 2025, and for the first time, the balance of the current account remained in surplus during this period.
The survey also highlights the improvements in fiscal indicators, including a reduction in the fiscal deficit to 2.6pc of GDP. The main balance registered a surplus of 3pc of GDP, reflecting a more disciplined tax approach.
Due to improving the economic foundations and proactive monetary policy measures, the policy interest rate was gradually reduced to 11pc. Meanwhile, credit to the private sector grew significantly, with loans that amounted to RS681 billion disbursed between July 2024 and May 2025.
The survey highlights trends, achievements and challenges in the main sectors that include agriculture, manufacturing, industry, services, energy, information technology and telecommunications, capital markets, health, education, transport and communication.
In addition, it sheds light on developments in social protection programs, environmental sustainability and infrastructure.
The document also presents updated data on critical economic indicators, such as inflation, trade and balance of payments, public debt, population growth, employment levels and impacts on climate change. By offering a consolidated vision of these indicators, the survey aims to inform the public debate and policy planning in the period prior to the new fiscal year.
Meanwhile, the NEC emphasized that recent “economic stabilization” signs were the result of the coordinated efforts of federal and provincial governments.
He declared that the country has now moved to a path of economic recovery and growth, with the agricultural sector playing a particularly important role in strengthening national reserves and supporting economic expansion.
“A comprehensive strategy is currently being formulated to ensure a constant and sustainable increase in agricultural productivity in the coming years,” he said.
In terms of developing spending, a total disbursement of RS3,483 billion for the National Annual National Development Program (ANDP) for 2024–25 has been approved. Of this amount, RS1,100 billion for federal development initiatives were assigned, while provincial governments used RS2,383 billion for their respective projects.
