- Inflation dropped to 7.2% in H1-FY2025, compared to 28.8% a year earlier.
- The agricultural sector increased by 6.2% during the 201024 financial year, supported by the investment.
- The current account balance displayed an excess of $ 1.21 billion in Jul DEC FY25.
The economy maintained its positive trajectory during the first half of the 201024-25 financial year, GDP developing by 2.5% after last year’s contraction, based on stabilization obtained during the ‘201024 fiscal year, according to a report from the finance division published on Monday.
The Pakistan State Economy Report (July-December 2025) attributes the positive impetus supported to sound macroeconomic management, effective inflation control measures and improving the stability of tax accounts and external.
“Inflation has decreased considerably to 7.2% in H1-FY2025, compared to 28.8% a year earlier, supported by the softening of world prices, a stable exchange rate and targeted government policies,” said The Ministry of Finance in the report.
Summing economic performance during the first six months of this exercise, the report indicates that political reforms, monetary relaxation and budgetary consolidation have further strengthened the basics of sustainable economic impetus.
By giving an overview of sectoral performance, the report indicates that the agricultural sector increased by 6.2% during the 201024 financial year, supported by an increase in investments, an extended agricultural credit and favorable weather conditions.
“High frequency indicators, including machines, investments and water availability, suggest a positive perspective for future growth in the sector. The industrial sector has shown mixed results; as the textile sector is gradually improving . “
He said that the services sector was to continue its positive trajectory, driven by the resumption of domestic activity and the growth of trade.
On the external front, the current balance of the account displayed an excess of $ 1.21 billion in July-December2025.
“Records for payment and solid export performance compensates for the growing import bill, while direct foreign investment (IDE) jumped by 20%, mainly fueled by investments in the electricity sectors and oil. “
In addition, the report indicates that exchange reserves are sufficient to cover more than two months of imports, supported by international monetary disbursements (IMF) and international financial aid.
Commenting on the exchange rate situation, he said that the rupee appreciated 1.2% compared to the dollar, indicating favorable external developments.
“The government has been able to reduce the budget deficit to 0.04% of GDP in July-Novel2025, a marked improvement in relation to the deficit of the previous year,” said the half-yearly report.
The financial division has credited this improvement to robust growth in tax and non -tax income, reflecting an improvement in budgetary discipline, a reduction in interest rates and a stable exchange rate.
Providing for future GDP growth, the report indicates that with strengthened economic fundamentals, the drop in inflation and the growing confidence of investors, Pakistan is well placed for continuous growth dynamics throughout the 20125 year .
The report indicated that the main political measures, including monetary easing and facilitation of exports, create an environment conducive to growth -oriented growth.
He added that continuous tax discipline, an improved external account and favorable global trends should support this positive impetus.
“Committed to sustainable growth, the government focuses on overcoming it structural challenges and the promotion of inclusive development and recently, the government has unveiled its 5 -year -old local economic transformation plan, Uraan Pakistan.”
The plan highlights inclusiveness thanks to a pragmatic, inclusive and autonomous approach to meet the economic challenges of Pakistan, added the report.