The economic growth comes with a notable boost in the investment-to-GDP ratio, anticipated to rise from 13 percent in 2024 to 16 percent by 2029, marking increased investor confidence. This is further supported by a remarkable 55.5 percent surge in Foreign Direct Investment (FDI).
The first quarter of FY 2025 saw exports increase by 7.2 percent, reaching $30.64 billion, a rise attributed to growing demand and strategic trade agreements. Inflation has also fallen from 38 percent in September 2023 to 6.9 percent in September 2024, leading to a reduction in the policy rate from 22 percent to 15 percent.
The Pakistani economy also witnessed growth in remittances, a substantial increase in foreign exchange reserves, and a historic high in the Pakistan Stock Exchange (PSX), which crossed the 91,000 level. These indicators point to a promising trajectory, with a strengthening fiscal environment and an optimistic outlook on continued reforms.