The Finance Ministry has maintained that sustaining the pace of external inflows is inevitable to meet upcoming gross financing needs.
In its Monthly Economic Update and Outlook report released on Friday, the ministry stated that efforts are vital to entrench economic and financial stability during last quarter of on-going fiscal year to maintain the policy and reforms, moreover, sustaining the pace of external inflows to meet upcoming gross financing needs and external sector stability is inevitable.
The ministry has predicted a moderate headline inflation on account of favorable domestic and global factors in the last quarter of FY2024.
During Jul-Feb FY24, CPI stood at 28.0 percent against 26.2 percent in the same period last year. On a Month on Month (MoM) basis, it increased by 0.03 percent in February 2024 compared to an increase of 1.8 percent in the previous month. The report states that inflation is projected to hover around 22.5- 23.5 percent in March 2024. However, there are expectations of a gradual easing further to 21-22 percent in April 2024.
According to the ministry, the performance of high frequency indicators is also signaling growth prospects in the ongoing fiscal year. In the real sector, the agriculture outlook is promising. In Rabi season 2023-24, the wheat sowing has surpassed the target of 8.998 million hectare.
The LSM, observed a marginal decline of 0.5 percent during July-January FY24, compared to a contraction of 2.7 percent last year. However, LSM output increased YoY by 1.84 percent in January 2024 when compared with January 2023. During Jul-Jan FY24, 12 out of 22 sectors witnessed positive growth
On the fiscal front, the primary surplus increased to Rs. 1,939 billion during Jul-Jan FY24 from Rs. 945 billion last year. The fiscal deficit during Jul-Jan FY24, however, increased to 2.6 percent of GDP as compared to 2.3 percent recorded last year.
The government is putting all its efforts to ensure prudent fiscal management through cautious expenditure and effective resource mobilization.
Current account posted a deficit of $1.0 billion for Jul-Feb FY2024 as against a deficit of $3.9 billion last year, largely reflecting an improvement in trade balance. In February 2024 the current account posted a surplus of $128 million as against a deficit of $50 million in the same period last year.
YoY exports increased by 16.2 percent to $2.6 billion in February 2024 as compared to $2.2 billion in February 2023 owing to ease in import restriction and exchange rate stability which resulted in smooth supply of raw material for export-oriented industries.
The YoY imports also increased by 10.2 percent to $4.3 billion in February 2024 as compared to $3.9 billion same month last year.
FDI witnessed an inflow of $131.2 million in February 2024 compared to an outflow of $173 million in last month. Remittances also showed an upward trend, they increased by 13.0 percent in February 2024 ($2.2 billion) as compared to February 2023 ($1.9 billion).
The report states that external and fiscal sustainability is also contributing to economic revival. . Pakistan and IMF reached a Staff-Level Agreement (SLA) on the final review of $3 billion SBA to secure a $1.1 billion tranche in coming month.
However, sustainable economic recovery requires continuation of fiscal consolidation and prudent policy stance, timely and adequate financial inflows to meet gross financing needs and external sector stability.
Where are they going to get inflows ?
Pakistan can’t even produce anything . We dont produce our own vehicles, we have no investment ..
Who will invest in a country with bomb blasts every few seconds ?
China which is our greatest ally is unable to work with us .
We dont have any good ideas to employ or youth . No one wants to stay here .
Tell these ministers to sell their foreign assets .