SBP Releases Half-Yearly Report for FY25, Indicates Stronger Economic Outlook
Karachi, April 28, 2025 The State Bank of Pakistan (SBP) has released Half-Yearly Report for FY25, highlighting distinguished progresses in the country’s macroeconomic indicators. According to report, significant inflation dropped to a multi-decade low of 0.7 percent by March 2025, the current account recorded a surplus, and the fiscal deficit narrowed to its lowest level since FY05.
These optimistic developments were maintained by tight economic and fiscal policies, stable global commodity prices, and the resumption of the IMF’s Extended Fund Facility (EFF) program. Following sharp disinflation, the SBP cut its policy rate by 1000 basis points between June 2024 and February 2025, helping boost private sector credit growth.
While factual GDP growth moderated due to weaker agricultural and industrial performance, the services sector showed pliability. On the external front, growing exports and strong remittance inflows strengthened Pakistan’s foreign exchange reserves.
The report also features a superior part highlighting the need to invest in efficiency to improve attractiveness and break the cycle of economic volatility.
State Bank of Pakistan projects normal inflation among 5.5-7.5 percent and upholds its real GDP growth prediction at 2.5-3.5 percent for FY25, while cautionary about global and domestic risks.
Full report available at:
https://www.sbp.org.pk/reports/half/arFY25/Half-index-eng-25.htm
