FY24-25 places Pakistan at a critical juncture where fiscal discipline is poised to take a crucial role in ensuring economic growth. The budget for the upcoming year reflects a commitment to maintaining economic stability and ensuring sustainable growth. The aim is to lay down a solid foundation for a robust economy that can withstand global economic pressures and internal fiscal challenges.

In the FY23-24, Pakistan’s economic landscape was marked by significant fiscal events and trends. A notable 6.25% growth in the agriculture sector, the highest in 19 years, was due to a 16.82% surge in the production of key crops, driven by substantial increases in cotton, rice, and wheat outputs. This is also partly attributed to the floods of 2022 which caused massive destruction, thereby reducing the base for agricultural growth. This has propelled Pakistan’s GDP growth to an expected 2.38%, a recovery from the previous year’s 0.21% contraction1, compared to India’s 8.2% and Bangladesh’s 6.1%.