Overview
- Finance Minister Muhammad Aurangzeb reported a primary budget surplus alongside a current account surplus for the first time in several years.
- Inflation has fallen from a peak near 38 percent to single-digit levels, with officials linking cooler prices to recent fiscal and monetary steps.
- Foreign exchange reserves have climbed past $14.5 billion and a steadier currency has helped rebuild investor confidence.
- Policy is shifting toward exports with priority sectors including information technology, agriculture and minerals, as IT exports are reported above $4 billion with expectations for further gains.
- Reforms in taxation, the energy sector and state-owned enterprises continue, with privatization and tariff rationalization flagged as next steps, while growth of 2.7 percent is acknowledged as below long-term needs.