Pakistan’s quest for economic stability continues, with some indicators showing significant improvement while others depict the plight of the common man. Inflation has come down to below 5pc, and the State Bank of Pakistan (SBP) has celebrated it with another two percentage points cut in interest rate of 13 per cent. The current account maintains its surplus, with exports of goods and services growing and remittances on the rise.

But, the number of unemployed people — between 4.5 million to 6.6m, according to the most conservative estimates — shows no signs of falling in the near future as large-scale manufacturing (LSM) output remains negative (during July-October 2024 LSM output declined 0.64pc year-on-year).

Small and medium enterprises that also cover small-scale industries are struggling to survive amidst the high cost of energy and finance and the deteriorating law and order situation across Pakistan.

The PML-N-led hybrid regime remains focused on how to deal with the main opposition party, PTI, in addition to fighting militancy and terrorism and fine-tuning its foreign policy amidst growing geopolitical challenges in the Middle East.

Economic recovery shows mixed progress, with inflation and interest rates........

© Dawn Business