Islamabad, Feb 27: The federal government has projected inflation to remain between 3% and 4% by March 2025, as per the Economic Update and Outlook (February 2025) issued by the Ministry of Finance. The report highlights Pakistan’s improving economic performance during July to January FY2025, signaling positive growth prospects in the upcoming months.
For February 2025, inflation is anticipated to range between 2% and 3%, with a slight uptick to 3%–4% in March. The government attributes this stability to effective fiscal management, improved revenue collection, and controlled expenditures.
Industrial Growth and Fiscal Stability
Economic growth is further supported by rising imports of machinery and raw materials, leading to a boost in Large-Scale Manufacturing (LSM). Additionally, higher cement dispatches and a decline in inflation, combined with a business-friendly monetary policy, are expected to strengthen LSM recovery and overall economic expansion.
The Finance Ministry also emphasized that fiscal consolidation measures are helping keep the fiscal deficit in check, ensuring greater financial discipline. With non-markup expenditures controlled, the primary surplus is projected to improve in the coming months.
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External Sector and Remittances
On the external front, exports, imports, and remittances continue to show steady growth. A surge in remittances is expected, driven by seasonal factors such as Ramadan, Eid-ul-Fitr, and Eid-ul-Adha. Similarly, trade activities are likely to expand, further stabilizing the Current Account Deficit (CAD).
With these developments, Pakistan’s economic outlook remains optimistic, signaling sustained growth, controlled inflation, and a stronger external sector.
