ISLAMABAD (The Tribune International) – The Ministry of Finance Pakistan has released its monthly economic outlook report, indicating a mixed performance of the national economy, with particular concern over declining exports and reduced foreign investment.
The report shows that exports dropped by 5.8 per cent during July–March, reaching $23.3 billion, reflecting continued challenges in the external sector. At the same time, imports rose by 7.9 per cent to $46.8 billion, widening the trade gap and putting pressure on the country’s balance of payments.
Foreign direct investment (FDI) also recorded a sharp decline of 27 per cent, falling to $1.35 billion. The decrease highlights subdued investor confidence and slower inflows amid global economic uncertainty and domestic challenges.
Despite these concerns, the report outlines several positive indicators. The State Bank of Pakistan maintained the policy rate at 11.5 per cent, while non-tax revenue increased by 7.7 per cent, signalling improved fiscal inflows.
Remittances remained a key strength, rising by 8.2 per cent to $30.3 billion during the period under review, providing crucial support to foreign exchange reserves. Overall reserves stood at $20.6 billion, including $15.1 billion held by the central bank.
The stock market also performed strongly, with the benchmark index at the Pakistan Stock Exchange surpassing 165,823 points. Market capitalisation increased by 44.3 per cent, reflecting investor activity despite broader economic challenges.
On the fiscal front, the Federal Board of Revenue collected over Rs9,305 billion in taxes during July–February, marking growth of more than 10 per cent. Meanwhile, the exchange rate remained largely stable, with the dollar hovering around Rs278.80 in the interbank market.
Inflation showed moderation, recorded at 7.3 per cent in March, while large-scale manufacturing grew by 5.9 per cent, indicating gradual industrial recovery. Agricultural lending increased by 14.4 per cent, and company registrations rose by 22.7 per cent, pointing to improving business activity.
The report also highlighted a notable improvement in the primary balance, which reached Rs4,319 billion, reflecting better fiscal discipline and expenditure management.
Overall, while the economy shows resilience in areas such as remittances, revenue, and industrial output, the decline in exports and foreign investment remains a key concern for policymakers.
