‘Signs of economy stability becoming more evident’

The Finance Ministry says signs of economy stability are becoming more evident. In its monthly economic update and outlook report, the finance ministry states that the GDP growth is on the recovery path while inflation continues its steady decline. Fiscal consolidation efforts are apparent from the positive primary balance, and the resilience of the external sector is evident by the positive current account balance. According to the report, agriculture has emerged as a main driver of economic growth in the current fiscal year, registering growth of 6.25 percent. Large Scale Manufacturing (LSM) growth is expected to remain moderately positive on average throughout the second half of the current fiscal year. The CPI inflation stood at 17.3 percent on a year-on-year basis in April this year as compared to 36.4 percent of the corresponding period last year. On the fiscal front, the revenue growth outpaced the growth in expenditures during the first nine months of current fiscal year. Both tax and non-tax col lection grew significantly by 29.3 percent and 90.7 percent, respectively. On the external front, the current account narrowed down significantly, recording a deficit of 0.2 billion dollars compared to last year's 3.9 billion dollars, primarily due to an improved trade balance. In April this year, the current account surplus was recorded at 491 million dollars. Exports in the month of April increased by 23.4 percent to 2.6 billion dollars, fueled by eased import restrictions that enhanced the supply chain for export industries. Total foreign investment during the first ten months of current fiscal year recorded an inflow of 659.3 million dollars as against an inflow of 341.4 million dollars last year. The country's total liquid foreign exchange reserves increased to 14.3 billion dollars this month with State Bank of Pakistan's reserves standing at 9.1 billion dollars and those of Commercial banks' at 5.2 billion dollars. Source: Radio Pakistan