The year 2024 represents a critical juncture for Pakistan’s economy, characterised by a confluence of significant challenges and emerging opportunities.

Throughout this period, Pakistan encountered a range of obstacles arising from a complex global economic environment, including fluctuations in commodity prices, alterations in trade dynamics, and geopolitical tensions with extensive implications.

Domestically, the government implemented key policy decisions aimed at stabilising the economy. Reforms in taxation and monetary policy were enacted to mitigate inflation and foster foreign investment. Infrastructure development initiatives were prioritised to stimulate economic growth and generate employment, notwithstanding the varying pace of implementation across different regions. Geopolitical developments, both regionally and globally, have considerably influenced Pakistan’s economic trajectory. Shifting alliances and trade relationships have impacted access to markets and the flow of foreign investment.

Natural occurrences, such as seasonal monsoons, have introduced further complexity to the economic landscape, affecting agricultural output, which remains a vital component of Pakistan’s economy. Looking ahead, forecasts for 2025 evoke a sense of cautious optimism. Analysts predict a gradual recovery, contingent upon the continuation of reforms, stable political conditions, and improvements in global economic circumstances. A concerted effort to enhance trade relationships and attract foreign direct investment will be essential for sustaining economic growth.

In 2024, Pakistan’s economy exhibited a moderate recovery, with Gross Domestic Product (GDP) growth estimated at 3.5 per cent, reflecting a slight improvement from the previous year’s sluggish performance. This recovery was predominantly fueled by the agriculture and services sectors, which rebounded following favourable weather conditions and the alleviation of disruptions related to the pandemic. Nevertheless, industrial output continued to face constraints due to energy shortages and inflationary pressures.

Inflation remained a significant challenge, averaging approximately 22 per cent throughout the year. Although global energy prices showed some stabilisation, domestic inflation was exacerbated by inefficiencies in........

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