Finance Minister Muhammad Aurangzeb presented the Pakistan Economic Survey 2024-25, highlighting challenges faced by major sectors of the economy in the past fiscal year. The report showed a 2.68% GDP growth, missing the 3.56% target.

Global economic growth has been declining, with Pakistan showing progress from a contraction of 0.2% in 2023 to 2.5% in 2024 and almost 2.7% in 2025. The finance minister emphasized the need for sustainable growth and a gradual recovery.

Inflation dropped to a 60-year low of 4.6%, aided by declining interest rates. The public debt-to-GDP ratio also decreased from 68% to 65% due to government debt buybacks.

However, major components of the economy missed targets, with a 13.5% contraction in major crops affecting overall GDP growth. The agriculture sector grew by only 0.6%, falling short of the 2% target.

The industrial sector showed 4.8% growth, surpassing the 4.4% target, but questions were raised about possible downward revisions. Large-Scale Manufacturing (LSM) struggled for the third consecutive year, contracting by 1.5%.

The services sector posted 2.9% growth, below the 4.1% target. Investment-to-GDP ratio improved to 13.8%, and national savings rose to 14.1% of GDP.

Structural reforms supported by the Extended Fund Facility (EFF) programme have contributed to economic transformation. The recent release of a $1bn tranche by the IMF faced opposition from India, highlighting economic challenges faced by Pakistan.

Reforms in public finance, pension, government size, and privatization of public entities are expected in the upcoming budget. The finance minister expressed confidence in the data presented in the Economic Survey report.