Pakistan's Economic Turnaround: Debt, Growth, and Future Prospects

Pakistan's debt surged to PRs 76,000 billion, yet the country is on a recovery path with projected growth of 2.7% in 2025. Finance Minister Muhammad Aurangzeb highlighted macroeconomic stability, including improved IT exports and remittances, as the country braces for an IMF-compliant, growth-focused budget.

Pakistan's burgeoning debt reached PRs 76,000 billion in the first nine months of the fiscal year, as highlighted in the recent economic survey. Despite this, Finance Minister Muhammad Aurangzeb revealed plans for an economic turnaround with a projected growth rate of 2.7% for 2025.

The survey, released before the federal budget announcement, presents an optimistic outlook, showcasing a gradual fiscal recovery with macroeconomic stability. Aurangzeb noted a rise in GDP growth from -0.2% in 2023 to 2.5% in 2024, attributing success to robust IT exports and remittance inflows.

With forex reserves improving to $16.64 billion and a strengthened credit rating, Pakistan aims to privatize 24 state-owned enterprises to curb losses. The budget debate in the National Assembly begins June 13, setting the stage for critical fiscal reforms for 2025-26.

(With inputs from agencies.)