Pakistan’s economy faces a mixed picture in 2023-24, with a reduced current account deficit and positive GDP growth rate of 2.4%. However, the manufacturing sector continues to decline, and inflation remains high. The budget deficit may exceed targets, and external inflows have been lower than projected. The living conditions of people have been severely affected by cumulative inflation and rising food prices, leading to increased poverty and unemployment. The Federal Budget of 2024-25 aims to increase revenues and achieve fiscal stabilization, but its reliance on indirect taxation may lead to contractionary effects and rising inflation.
12 September, 2024