Khurram Schehzad, Advisor to the Finance Minister, expressed optimism about Pakistan’s economic prospects despite the modest 0.92% GDP growth recorded in the first quarter of FY25. He attributed the slow start primarily to a 1.03% contraction in the industrial sector but noted that resilience in agriculture and services, which grew by 1.15% and 1.43% respectively, is laying a foundation for recovery.
Schehzad, commenting on the Pakistan Bureau of Statistics (PBS) data through a series of Tweets, linked the subdued industrial performance to transitional adjustments. However, he underscored that the policy rate cut implemented on June 24 is expected to gradually stimulate industrial growth by encouraging borrowing, investments, and capacity expansion.
He further pointed out that easing inflationary pressures and stabilization of the PKR/USD exchange rate would likely bolster aggregate demand, creating conditions conducive to sustained economic recovery in the coming quarters. While acknowledging current challenges, Schehzad maintained that the economy’s fundamentals are aligning for long-term improvement.
