The economic forecast for Pakistan in 2024 is cautiously optimistic.

As Pakistan overcame obstacles and made progress toward recovery, its economic narrative in 2024 was marked by cautious optimism.

A $7 billion International Monetary Fund (IMF) bailout package was approved, marking a turning point in the year and giving the country’s economy much-needed boost. The IMF predicted that Pakistan’s GDP will rise by 3.2% in fiscal year 2025, which is a modest but positive improvement over earlier projections.

In another indication of the economy’s strength, the World Bank and Asian Development Bank (ADB) increased their growth forecasts for fiscal year 2025 to 2.8% and 3%, respectively.

With the KSE-100 index rising from 58,000 points to 117,000 points at the end of the year, the Pakistan Stock Exchange (PSX) saw a historic jump. This increase showed that investor confidence had increased. Two and a half months’ worth of imports might be covered by the $12 billion rise in foreign reserves from $7 billion.

Inflation decreased from 29.2% in 2023 to 4.9% in 2024, one of the major improvements in key economic indices. Interest rates dropped from 22% to 13%, giving the economy much-needed respite.

Reserves of foreign currency increased to $12 billion, enough to cover imports for two and a half months. Exports increased 12.57% from July to November 2024 to reach $13.7 billion, while remittances increased 34.7% annually to $11.84 billion.