Strenuous efforts needed to achieve tremendous progress of economy in 2025: analyst

KARACHI: In our country, the average 2024 growth of economy needs strenuous efforts to achieve tremendous progress of economy in 2025 said Ateeq ur Rehman (economic & financial analyst).

The current account being key figure for cash strapped Pakistan relies heavily on imports to run its economy. A good sign, Pakistan’s current account posted a surplus for last four consecutive months of 2024. He added that another wonderful achievement in 2024, Pakistan Stock Exchange hits highest ever levels with impressive gains on the back of strong interest of local investors and institutional support.

This brought a big name to Pakistan. The Remittances showed rising flows in 2024. Step by step and gradual declining of interest rate made sense eventually major interest rate cut from 15 basis point to 13 basis points in the year 2024, eventually easing the cost of borrowing. There were heavy taxes on salaried class, rose by 57%.

Only in last 5 months of 2024, F recovered around Rs500 billion from them.

Tax relief to salaried class is anticipated in 2025. There have been continuous revenue challenges, rising public debts and unemployment challenges FBR fall short of revenue collection targets by Rs1 trillion quite difficult to meet ambitious targets.

Public debt continued to loom large over Pakistan’s Economy, a burden to country’s fiscal health. Government gross debt almost rose by 69.25% of GDP in 2024.He said that in 2024 , privatization of loss making SOEs like Pakistan Post Office, Pakistan Steel Mills, Pakistan International Airlines, etc has been slow need to be fast in 2025. This has consistently drained the national exchequer. In 2025, there is a dire need of a road map for boosting exports and measures to promote it.

We have to attain the ambitious targets of US$60 billion to US$100 billion by requesting our friendly countries for penetrating and placement of made in Pakistan and produce of Pakistan.

In 2024 there has been tremendous work on the establishment of Special Economic Zones / Industrial Zones, they will grow once the existing industrial zones are facilitated and provided with amenities allocated for these zones said Ateeq. It is inevitable that we need to work on producing our local raw material moreover promote import substitution industry.

Copyright Business Recorder, 2024