Ministry of Finance releases the monthly economic update, January 2024 shows marked improvement in 14 Economic Indicators & declining trend in 10 sectors of economy  

ISLAMABAD, Jan 31 (SABAH): Ministry of Finance on Wednesday released the Monthly Economic Update and outlook January 2024 shows marked improvement in 14 Economic Indicators and declining trend in 10 sectors of Economy.  

The first half of FY2024 has ended with economic stabilization. The government’s effective measures and prudent policies helped stabilize the macroeconomic situation, leading to a gradual improvement in economic activities. It is expected that economic activities will further strengthen during second half of FY2024 contingent on the continuation of sound and prudent economic policies which will gear toward achieving the set growth target for the current fiscal year, the report adds.  The report contains comparison of economic data with July-December period of 2022-23 with July-December period of 2-23-24.

Pakistan foreign exchange reserves improved from $8.742 billion to $13.257 billion, including improvement State bank reserves from $3.087 billion to $8.211 billion. The reserves with the commercial banks declined from $5.655 billion to $5.046 billion.

Pakistan exchange rate also witnessed a further decline of Rs.17.04 per US Dollar, the parity declined from Rs.262 to Rs.279.64 a US Dollar.

FBR tax collection increased by 30.3 billion and it increased from Rs.3429 billion to Rs.4469 billion. Similarly, non-tax collection (federal) also increased from Rs.914.1 billion to Rs.1979.1 billion during this first half.  PSDP spending declined from Rs.161.7 billion to Rs.152.1 billion, indicating a decline of 5.7 percent.

Fiscal deficit of the federal government increased from Rs1683.5 billion to Rs.2407.8 billion during the first half of ongoing fiscal year 2023-24.  Primary balance improved by 103.7 percent, it increased from Rs.889.6 billion to Rs.1812.2 billion.

Agri credit jumped from Rs.842.4 billion to Rs.1105.8 billion, similarly, credit to private sector declined from 581 billion to Rs.373.5 billion. Consumer Price Index (National) increased from 25 percent to 28.8 percent during July-December period of this fiscal year, it also increased from 24.5 percent to 29.7 percent in December.

SBP policy rate increased from 17 percent to 22 percent in this first half on this fiscal year 2023-24.  A major improvement was witnessed in the stock market of the country, whereby, the total market capitalization increased from $23.39 billion to $33.05 billion, indicating an increase of 41.3 percent. 

Pakistan stock exchange index improved from 43,899 points to 62,771 points showing a market improvement of 43 percent. Market capitalization in Pak Rupee increased from Rs.6.69 trillion to Rs.9.24 trillion.

The registration of new companies, increased from 13,694 to 14,328 in first half of this fiscal year.  The improvement in large Scale Manufacturing improved from negative 4.85 to positive1.59 percent in December. Similarly, during July-December period it improved from negative 2.33 percent to a negative 0.80 percent.

Remittances from overseas Pakistan witnessed a decline of 6.8 Percent, these declined from $14.4 billion to $13.4 billion in this first half. Exports of the country also witnessed an upward trend of 7.5 percent and such increased from $14.2 billion to $15.3 billion and imports also declined from $29.6 billion to 25.2 billion, showing a decrease of 77.1 percent during the first half of ongoing fiscal year 2023-24 . The current account deficit declined from $3.6 billion to $080 billion showing a decline of 771 percent in first half.

Foreign Direct Investment improved from $640 million to $862.6 million, projecting an increase of 34.8 percent in this period. Portfolio Investment improved from negative $1.033 billion to $71.0 million, indicating an improvement.

Total Foreign Investment improved from negative $393.3 million to $933.7 million, showing a market recovery in this first half.