
Pakistan Economic Survey 2024-25 to be launched on Monday
The government will launch the Pakistan Economic Survey 2024-25 tomorrow (Monday) in the afternoon, a statement from the Ministry of Finance said on Sunday.
Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad at 2:30pm.
The government will then announce the budget for the financial year 2025-26 on Tuesday.
The earlier dates for the Economic Survey 2024-25 and budget announcement for FY26 were June 1 and June 2, respectively.
However, the government extended the dates to June 6 and June 7.
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Express Tribune
2 hours ago
- Express Tribune
Govt to unveil Economic Survey 2024-2025 tomorrow
Listen to article The federal government is set to unveil the Economic Survey for the fiscal year 2024-25 tomorrow (Monday), revealing that Pakistan failed to meet its annual growth target for the outgoing fiscal year, as key economic sectors underperformed. According to official data shared ahead of the survey's release, the provisional gross domestic product (GDP) growth rate for FY2023-24 stood at 2.68%, significantly below the 3.6% target set by the government. Despite this shortfall, the overall size of Pakistan's economy expanded by $39.3 billion, reaching $410.96 billion, up from $371.66 billion last year. In local currency terms, the economy grew by Rs9.6 trillion, with the total volume rising to Rs114.7 trillion from Rs105.1 trillion a year earlier. Per capita income also increased by $144, reaching $1,680. The economic survey highlights an uneven performance across sectors, with some industries outperforming targets while others struggled to maintain momentum. Agriculture The agriculture sector recorded an overall growth of just 0.56%, missing the 2% target. Major crops saw a steep decline of 13.49%, far worse than the targeted contraction of 4.5%. The cotton ginning segment also witnessed a sharp downturn, contracting by 19%. However, livestock and other crops showed relatively better results, growing by 4.72% and 4.78% respectively. Forestry and fishing remained below expectations. Industry Industrial output showed moderate strength, registering a growth rate of 4.77%, slightly above the 4.4% target. Small-scale manufacturing and slaughtering sectors recorded impressive growth of 8.81% and 6.34%, respectively. In contrast, large-scale manufacturing contracted by 1.53%. Electricity, gas, and water supply surged by an exceptional 28.88%, far surpassing the modest 2.5% target, while the construction sector also exceeded expectations with 6.61% growth. Services The services sector expanded by 2.91%, falling short of its 4.1% target. Wholesale and retail trade grew by a mere 0.14%, reflecting weak consumer activity. Sub-sectors such as information and communication, finance, real estate, education, health, and social work showed moderate gains. Public administration and social security, however, stood out with a robust 9.92% growth—nearly triple the target of 3.4%. Overall assessment The Economic Survey paints a picture of a mixed and unbalanced economic performance. While select sectors such as utilities, construction, and livestock delivered above expectations, critical segments like agriculture, large-scale manufacturing, and trade fell considerably short, dragging down overall growth. The findings will set the stage for the upcoming federal budget as policymakers attempt to address sectoral weaknesses and recalibrate economic priorities for sustainable recovery.


Business Recorder
7 hours ago
- Business Recorder
Pakistan Economic Survey 2024-25 to be launched on Monday
The government will launch the Pakistan Economic Survey 2024-25 tomorrow (Monday) in the afternoon, a statement from the Ministry of Finance said on Sunday. Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad at 2:30pm. The government will then announce the budget for the financial year 2025-26 on Tuesday. The earlier dates for the Economic Survey 2024-25 and budget announcement for FY26 were June 1 and June 2, respectively. However, the government extended the dates to June 6 and June 7.


Express Tribune
2 days ago
- Express Tribune
Govt walks a tight rope
FDI in various sectors, including power, oil and gas exploration, financial, and petroleum refinery sectors, witnessed a 6.4-fold increase, reaching $211 million in December 2023 compared to $33 million last year. photo: afp Listen to article The government will walk a tight fiscal rope in the next fiscal year, too, as it plans to unveil the second budget on Tuesday envisaging a federal budget deficit of Rs6.2 trillion or 4.8% of size of the economy. The total size of the budget is expected to be around Rs17.6 trillion, which is 7.3% less than this year's original budget due to relatively lower allocations for the interest payments in fiscal year 2025-26, according to the Finance Ministry's budget estimates. The government sources said that the proposed budget deficit is 2% of the GDP or Rs2.3 trillion less than the original estimates of this fiscal year. The deficit may still be appearing large in absolute terms. But it is, for the first time, lower than this year's gap, both in terms of size of the economy and in absolute numbers. The tight budget envisages fiscal consolidation of 2% of GDP, as the government is planning to set the budget deficit target at 4.8% of GDP, the sources said. This will be 2% of GDP or Rs2.6 trillion lower than this fiscal year's target. Finance Minister Muhammad Aurangzeb will deliver his second budget speech on June 10. The expenditure path is known to be narrower and predicted. However, it seems that the government may again adopt the business as usual approach on the revenue front, which is unsustainable and puts the country's marginalized salaried class and corporate sector at risk of being insolvent. The fiscal consolidation is the need of the hour but it will drastically reduce the government's ability to spend due to no space left for any productive spending after making payments for the interest servicing and defense. However, whatever space is left is not prudently used and the sources said that the quality of spending becomes poorer with large allocations for provincial projects, discretionary spending on the schemes recommended by the Parliamentarians at the expense of space technology and atomic energy programmes. The sources said that the fiscal consolidation is again planned to be achieved by putting more burden on the people, directly as well as indirectly. The government is projecting gross federal revenues at record Rs19.4 trillion for next fiscal year, higher by Rs1.6 trillion. The gross revenues are based on the Federal Board of Revenue's tax target of Rs14.13 trillion and Rs5.2 trillion non-tax revenues. The non-tax income will mainly come from the Petroleum Levy, which the government wants to increases to nearly Rs100 per liter, and the profit by the State Bank of Pakistan. The sources said that like this fiscal year, the FBR may remain the weak area in the next fiscal year, too, despite the required growth to achieve the goal will be far lower than this year. The new tax collection target will become challenging from first day of next fiscal year because the FBR will not be able to achieve even the downward revised target of Rs12.3 trillion, said the sources. This will erode the base of new tax target. Prime Minister Shehbaz Sharif tried everything to put the FBR house in order but all those measures backfired. The FBR's ability to predict revenue estimates is also not up to the mark and this year the World Bank experts helped in projecting numbers, said the sources. Out of the Rs14.1 trillion FBR tax collection, the provinces will get Rs8 trillion as their shares in the federal taxes under the National Finance Commission award, the sources added. This leaves the federal government with Rs11.4 trillion net revenues for next fiscal year, which will not be sufficient to meet the interest payments and inclusive all defense spending, according to the government sources. The government will borrow Rs6.2 trillion in the next fiscal year to finance the Rs17.6 trillion total federal budget. Under the IMF programme, the four provinces are also required to save Rs1.33 trillion from their revenues as cash surplus to bring down the national budget deficit to Rs4.8 trillion or 3.7% of GDP, the sources said. This is steeper fiscal consolidation and would require all the five governments to meet all their revenue and expenditures related targets. The four provinces have indicated nearly Rs2.9 trillion for their development spending in the next fiscal year. This is Rs850 billion more than what the IMF has allowed to spend to the four provinces under the national fiscal framework. Punjab has indicated Rs1.2 trillion record spending on development, followed by Rs995 billion by Sindh.