Rs

Monthly

July 2023

Government of Pakistan
Finance Division
Economic Adviser’s Wing

Executive Summary 01
Contents

International Performance and Outlook 01

Monthly Performance of Pakistan's Economy 03
TABLE OF

Economic Outlook 07
Economic Indicators 10
 M O N T H LY E C O N O M I C U P D AT E & O U T L O O K

the last year. The current account has

Execu ve posted a deficit of $2.6 billion for FY2023, a
reduction from the previous year's deficit of
Summary $17.5 billion. The current account has
improved, resulting in a surplus of $334
million in June 2023.

F
Y2023 was a challenging fiscal year,
however, it has witnessed
noteworthy fiscal and current Interna onal
account balance improvements. The
government's stern decisions and Performance and
stabilization measures have steered the
country towards a sustainable path. Growth
Outlook
targets of 3.5% are anticipated to be met
through Kissan package, industrial support, OECD economic outlook estimated global
export promotion, encouragement of the IT growth to be 2.7% in 2023, with a modest
sector, and resource mobilization efforts. pick-up to 2.9% in 2024 – both well below
the average growth rate in the decade
On the global front, the economic activity in preceding the COVID-19 pandemic. Global
major advanced economies is still showing GDP growth slowed substantially
signs of weakness, mainly due to the throughout 2022, but several of the factors
continuation of monetary tightening weighing negatively are now unwinding.
measures. Inflation has fallen in some Falling energy prices and headline inflation,
economies due to lower energy prices, but easing supply bottlenecks and the
food and services prices continue to rise, reopening of China's economy coupled with
contributing to persistent high inflation. strong employment, all contribute to a
Monetary tightening measures are still in projected recovery. Significant uncertainty
place. about economic prospects remains, and the
major risks to the projections are on the
Consumer Price Index (CPI) inflation has
downside. One key concern is that inflation
declined to 29.4 percent in the month of
could continue to be more persistent than
June 2023 from 38.0 percent recorded in
expected.
May 2023. The food inflation (urban) has
declined from 48.1 percent to 40.8 percent. Emerging-market economies face
Sensitive price indicator (SPI) also declined challenges from tight global financial
by 0.07 percent on week ended 20th July, conditions: higher debt servicing costs,
2023. capital outflows, and reduced credit
availability from foreign lenders. Moreover,
The fiscal front has seen an important
rising geopolitical tensions and concerns
improvement, with the primary deficit
about supply chain security have prompted
reducing significantly from Rs. 945.3 billion
several countries to implement trade and
last year to Rs. 112.0 billion during Jul-May
investment restrictions. Increasingly
FY2023. Furthermore, the fiscal deficit is
restrictive trade policies risk curtailing the
also expected to decline from the previous
gains from global trade and harming the
year 7.9% of GDP, largely due to a 12%
development prospects of low-income
reduction in non-markup spending.
countries.
In order to contain persistently rising
Asian Development Outlook for July-2023
inflationary pressures and to maintain
projects Developing Asia's outlook
external sector stability, SBP had to
optimistic, as the China reopening and
increase the policy rate by 100 basis points
domestic consumption and investment
to 22 percent in its last monetary policy
continue to underpin growth in the region.
committee meeting.
The regional growth forecast is maintained
The current account deficit has also at 4.8% for 2023 and marginally revised
declined by 85.4 percent as compared to downward to 4.7% for 2024. It is projected

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that headline inflation is returning to pre-

Fig-1: Growth in WEI (%)
pandemic averages, as supply-side
pressures from energy and food prices has 3.5
been decreased. However, downside risk
also prevails as higher-for-longer interest 3.0
rates in the US and other advanced
2.5
3.29
economies could dent growth prospects.
1.37
US economic activity increased slightly in 2.0
recent weeks, with slow growth seen
1.5
continuing in coming months, according to
Federal Reserve Report “Beige Book”. 1.0

Moreover, the report largely dovetailed with 0.5

other recent data suggesting upward
pressure on prices was softening. Price 0.0
expectations were generally stable or lower 07/02/2022 12/31/2022 07/01/2023
over the next several months. Employment Source: Federal Reserve Bank of New York

was also reported to have continued

increasing "modestly". US consumer prices Fig-2 (a): Composite Leading Indicator
rose modestly in June by 0.2 percent on
MoM basis and by 3.0 percent on YoY 102.0 UK US China
basis, registered smallest annual increase 101.0
since August 2021. In the 12 months
100.0
through June, the core CPI rose 4.8%. That
99.0
was the smallest YoY gain since October
2021 and followed a 5.3% increase in May. 98.0
97.0
Nevertheless, inflation remains well above
the Fed's 2% target, with the labor market 96.0
still tight. Though employment gains were 95.0
the smallest in two and half years in June, 94.0
the unemployment rate fell close to 93.0
historically low levels and wage growth was
92.0
strong, implies Federal Reserve will resume Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
to raise interest rates this month. The slow Source: OECD
growth economic situation is also reflected
through growth in WEI which is moving
Fig-2 (b): Composite Leading Indicator
around 1% during second quarter of 2023
compared 3% during same period last year 100.0 France Itlay Germany
(Fig-1).
99.5
The J. P. Morgan Global Composite Output 99.0
Index decreased to 52.7 in June 2023, from
54.4 in May 2023. The global economic 98.5
upturn lost momentum at the end of the 98.0
second quarter, as a downturn in 97.5
manufacturing output was accompanied by
slower growth at service providers. The 97.0
expansion continued to be driven by the 96.5
service sector as the business, consumer 96.0
and financial services remained sluggish.
The major growth was registered in India, 95.5
Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Russia, US and UK all registered growth Source: OECD
above the global average.

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The economic situation of Pakistan's major 2023, urea offtake was 459 thousand
trading partners also showed through CLI, tonnes, which increased by 10 percent
of which China, UK and US showing while DAP offtake was 66 thousand tonnes,
increasing growth momentum in the month which decreased by 30.1 per cent over May
of June as compared to May, however the 2022.
euro area as a whole witnessed growth
2.1-b Manufacturing
below its potential level (Fig-2, page # 2).
Large Scale Manufacturing remained on a
The FAO food prices index (FFPI) averaged
negative trajectory with the observed
122.3 points in June 2023, declined by 1.7
decline of 9.87 percent during Jul-May
points from May. The decline in June was
Fy2023 due to supply chain disruptions,
driven by a significant decline in the price inflationary pressures and resultant hikes in
indices for vegetable oils, cereals and dairy, input prices, and continued contractionary
while the meat price index remained policy stance at the domestic level to
unchanged. correct the macroeconomic imbalances. On
Global commodity prices fell in June 2023. a YoY basis, LSM nosedived by 14.37
Energy prices declined by 1.8 percent, led percent in May 2023 and on MoM basis, it
by coal 13.1 percent and oil 1.2 percent. grew by 5.88 percent. During the period, 4
Non-energy price fell by 1.9 percent. Food sectors witnessed positive growth which
prices down by 3.5 percent. Fertilizer prices includes Wearing apparel, Leather
dropped 9.3 percent. Metal price declined Products, Furniture, and others (Football).
0.4 percent led by zinc 4.0 percent and The automobile sector continues to face
aluminum 3.7 percent which were offset by challenges due to an unfriendly economic
gains in iron ore 7.9 percent. Precious metal environment as the total production
eased by 2.7 percent. witnessed a decline of 37.4 percent in
FY2023 and total sales dipped by 37.8
Monthly Perfor- percent. The poor performance in the Cars,
Tractors and Trucks & Buses remain the
mance of Pakistan's major contributors to the overall decline of
this sector as Car production and sale
Economy decreased by 55.0 percent and 58.7
percent, Tractors production and sale
decreased by 46.1 percent and 47.5
2.1Real Sector
percent, and Trucks & Buses production
2.1-a Agriculture and sale decreased by 40.3 percent and
41.0 percent, respectively.
According to the initial estimates, the cotton
Fig-3: Fiscal Indicators % of GDP (Jul-May)
area sown in Punjab was recorded at 1.947
million ha which comprises 96.43 percent of Fiscal Deficit Primary Deficit
the target (2.019 million ha). Whereas 6.0
cotton cultivation area in Sindh stood at 5.5
5.2
0.625 million ha, 92.98 percent of the target
(0.672 ha). The total sown area stood at
2.676 million ha showing 96.7 percent of 4.0
target (2.767 million ha). Further, improved
quality of cotton seed has been used both in
Punjab and Sindh which will auger well to
achieve current year's target of 12.77 2.0
million bales. 1.4

During Jul-May FY2023, the agriculture

credit disbursement increased by 28.4 0.1
0.0
percent to Rs 1,565.2 billion as compared to FY2023 FY2022
Rs 1,219.3 billion last year. During May

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The sale of petroleum products was down Fig-4: FBR Tax Collection (Rs. bn) (Jul-Jun)
by 26 percent in FY2023 to 16.6 mn tons
from 22.6 mn tons in the same period last
year. Oil sales clocked in at 1.3 mn tons in

3,272
June 2023, a 31.0 percent decline on YoY
basis.

2,592

2,532
In FY2023, total cement dispatches

2,285
declined by 15.7 percent to 44.579 mn tons.
In June 2023, demand for cement
dispatches declined by 22.8 percent to
4.063 mn tons (5.264 mn tons in June

1,011
935
2022). Local cement sales by the industry

370

321
came in at 3.487 mn tons in June 2023, a
substantial decline of 30.0percent from the
last year. Whereas exports surged by 102.6 FY2023 FY2022
percent from 284,471 tons to 576,309 tons Source: FBR
during the same period.
the comparable period of last year.
2.2 Inflation
Net federal revenues grew by 24.4 percent
CPI inflation recorded at 29.4 percent on a to Rs.4,166.6 billion in Jul-May FY2023
year-on-year basis in June 2023 as against Rs 3,349.5 billion last year. The
compared to 21.3 percent in June 2022 major contribution in revenues came from a
whereas it increased to 38 percent in the 31 percent increase in non-tax collection on
previous month and average CPI inflation account of higher collection from petroleum
for July-June FY2023 stood at 29.2 percent levy during the period under review.
compared to 12.2 percent during the same Besides, other components like markup
period of last year. (PSEs & others, dividends, passport fees,
On a Month on Month (MoM) basis, it royalties on oil/gas, and windfall levy
decreased to 0.3 percent in June 2023 against crude oil also contributed to
compared to an increase of 1.6 percent in increasing the non-tax collection. In
the previous month. The non perishable absolute terms, non-tax revenues increased
items and perishable items declined by 0.9 to Rs 1,476.1 billion during Jul-May FY2023
percent and 1.6 percent respectively on from Rs 1,124.1 billion last year.
MoM basis. Similarly, the declined observed Net provisional Tax collection, on the other
in Housing, water, electricity, gas & fuels 0.2 hand, grew by 16.6 percent to stand at Rs
percent and Transport 2.2 percent. 7,169.1 billion during Jul-Jun FY2023
However, the increase observed in against Rs 6,148.5 billion last year. Notable,
Furnishing & household equipment domestic tax collection surpassed the target
maintenance 1.6 percent, Restaurant & by Rs 102 billion to reach Rs 6,234.3 billion.
hotels 1.4 percent, Clothing & footwear 1.1 It recorded an increase of 21.3 percent
percent and Education 0.4 percent. during FY2023 owing to higher collection
The SPI for the week ended on 20thJuly from direct tax (43.2 percent), whereas
2023, recorded a decrease of 0.07 percent customs duty reduced by 7.5 percent due to
as compared to previous week. Prices of 09 a significant contraction in imports.
items declined, 12 items remained stable On the expenditure side, total spending
and 30 items increased. grew by 20 percent to reach Rs 8,849.6
2.3 Fiscal billion during Jul-May FY2023 against Rs
7,361.5 billion last year. Within total, current
During Jul-May FY2023, the fiscal deficit expenditure grew by 22 percent to Rs
recorded at 5.5 percent (Rs 4,652.2 billion) 8,337.8 billion during Jul-May FY2023
against 5.2 percent (Rs 3,468.5 billion) in against Rs 6,843.8 billion last year. The

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entire increase in current spending reflecting an improvement in trade balance.

stemmed from an 80 percent rise in markup Exports on fob declined by 14.1 percent
payments owing to a higher policy rate. In during FY2023 and reached $ 27.9 billion ($
contrast, non-markup spending was 32.5 billion last year). Imports on fob
reduced by 12 percent largely due to a 31 declined by 27.3 percent during FY2023
percent decline in subsidies and a 32 and reached $ 52.0 billion ($ 71.5 billion last
percent decrease in grants. However, a year). Resultantly the trade deficit (FY2023)
notable increase has been witnessed in reached to $ 24.1 billion as against $ 39.1
grants for BISP and poverty alleviation billion last year.
funds indicating the government's
Exports in Services during FY2023
commitment to pro-poor spending while
increased by 2.7 percent to $ 7.3 billion as
creating fiscal space by reducing non-
against $ 7.1 billion. The imports in services
productive spending.
decreased by 38.0 percent to $ 8.0 billion
With a decline in non-mark-up spending, the as compared to $ 12.9 billion same period
primary deficit has been narrowed down to last year. The trade deficit in services
Rs.112.0 billion during Jul-May FY2023 contained by 87.7 percent to $0.7 billion as
from Rs.945.3 billion recorded last year. against $ 5.8 billion same period last year.
2.4 Monetary As per PBS, during FY 2023, exports stood
at $ 27.7 billion ($ 31.8 billion last year),
Monetary Policy Committee (MPC) has
declined by 12.7 percent. The major export
increased the policy rate by 100 bps to 22
commodities which have shown positive
percent, effective 27th June, 2023. The
growth during the review period include
committee considered this action as
Raw Cotton (322.8 percent in quantity &
necessary to keep real interest rate firmly in
104.8 percent in value), Fish & Fish
the positive territory on a forward-looking
Preparation (28.9 percent in quantity &
basis. This would help further anchor
15.2 percent in value), Foot Balls (28.8
inflation expectations, which are already
percent in quantity & 24.3 percent in value),
moderating over the last few months, and
Foot wear (35.5 percent in quantity & 13.7
support bringing down inflation towards the
percent in value), Surgical goods & Medical
medium-term target of 5 – 7 percent by the
Instruments (5.9 percent in value) and
end of FY25.
pharmaceutical products (85.6 percent in
During 1st July – 02nd June, FY23 money quantity & 22.0 percent in value).
supply (M2) shows growth of 8.9 percent
The total imports in FY2023 decreased to $
(Rs 2467.5 billion) compared growth of 7.8
55.3 billion ($ 80.1 billion last year), thus
percent (Rs 1901.7 billion) in last year.
declined by 31.0 percent. Main commodities
Within M2, NFA decreased by Rs 2137.8
imported were Petroleum products ($7.6
billion as compared decrease of Rs 1725.7
billion), Petroleum crude ($ 4.9 billion),
billion in last year. On the other hand, NDA
Liquefied Natural gas ($ 3.7 billion), Palm
of the banking sector increased by Rs
Oil ($ 3.6 billion), Plastic materials ($ 2.3
4605.3 billion as compared an increase of
billion), Iron & Steel ($ 1.9 billion) and
Rs 3627.4 billion last year. Private Sector
Medicinal products ($ 1.3 billion).
has borrowed Rs 25.4 billion as compared
borrowing of Rs 1424.7 billion in last year. 2.5.1 Foreign Investment
2.5 External Sector FDI reached $ 1455.8 million during
FY2023 ($ 1935.9 million last year)
The Current Account posted a deficit of $
decreased by 24.8 percent. FDI received
2.6 billion for FY2023 as against a deficit of
from China $ 432.2 million (29.7 percent),
$ 17.5 billion last year, mainly due to
Japan $ 183.0 million (12.6 percent), U.A.E
contraction in imports. However, the current
$ 180.1 million (12.4 percent) and
account posted a surplus of $ 334 million in
Switzerland $ 134.0 million (9.2 percent of
June 2023 as against a deficit of $ 2321
total FDI). Power sector attracted highest
million in same month last year, largely

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FDI of $ 622.6 million (42.8 percent of total Fig-5: Trend of Major World Standardized Indices
FDI), Financial Business $ 275.1 million
(18.9 percent), and Oil & Gas Explorations 110.00 KSE-100 S&P 500
$ 135.1 million (9.3 percent). CAC 40 SSE Composite
108.00 Sensex 30
Foreign Private Portfolio Investment has 106.00

registered a net outflow of $ 18.2 million 104.00

during FY2023. Foreign Public Portfolio 102.00
Investment recorded a net outflow of $ 100.00
1008.0 million, on account of Sukuk 98.00
repayment in December 2022. The total
96.00
foreign portfolio investment recorded an
94.00
outflow of $ 1026.2 million during FY2023
as against an outflow of 87.7 million last. 92.00
Total foreign investment during FY2023 90.00
recorded an inflow of $ 429.7 million as 04-May-23 31-May-23 27-Jun-23
against $ 1857.8 million last year. Source: PSX, Investing.com

Note: All indices are standardized to 100 on the

2.5.2 Worker's Remittances initial day of the sample taken in this figure.
In FY2023, workers' remittances recorded
at $ 27.0 billion ($ 31.3 billion last year), as of end June 2023; this was a slight
decreased by 13.6 %. MoM, remittances increase of 122 points as compared to the
increased by 3.9% in June 2023 ($ 2.2 last month. The index was more than 400
billion) as compared to May 2023 ($2.1 points above its 06 months' average i.e.,
billion). Share of remittances (FY2023) from 40,994. As of end June 2023, the market
Saudi Arabia remained 23.9 percent capitalization of PSX settled at Rs 6,369
($6445.4 million), U.A.E 17.2 percent billion. However, on positive note the KSE-
($4648.6 million), U.K 15.0 percent 100 index crossed 46,000 mark and closed
($4056.4 million), USA 11.4 percent at 46,417 points as on 25th July 2023,
($3090.2 million), other GCC countries 11.8 highest in 15 months. During May-June
percent ($3191.4 million), EU 11.5 percent 2023, the major world stock indices
($3120.6 million), Australia 2.2 percent ($ remained volatile. The KSE-100 index
593.0 million), Canada 2.0 percent ( $ 550.5 decreased by 1.5 percent (Fig-5), SSE
million), Malaysia 0.4 percent ($ 104.8) and Composite of China and CAC40 of France
other countries 4.5 percent ($1223.4 also declined by 4.8 and 1.7 percent
million). respectively. Increase has been observed in
Sensex 30 of India (2.7%) and S&P of US
2.5.3 Foreign Exchange Reserves (7.8%).
Pakistan's total liquid foreign exchange
2.7 Social Sector
reserves increased to $ 14.1 billion on July
12, 2023, as with the SBP's reserves raise § BISP has released 4th quarterly
significantly to $ 8.8 billion on account of $ tranche of FY2023 of Rs 81 billion
3.0 billion disbursement from friendly under Benazir Kafaalat programme
countries ($ 2 billion from Saudi Arabia and to its partner banks (Bank Alfalah
$1 billion from UAE) and $ 1.2 billion from and HBL) through their retail
IMF under Stand-By Arrangement. Whereas distribution network for
Commercial banks' reserves remained at $ disbursement amongst 9.0 million
5.3 billion. registered beneficiary families @
Rs 9,000 per household.
2.6 Performance of KSE Index
§ Rs 16 billion is also released under
The performance of the stock market
Benazir Taleemi Wazaif stipend's
remained at par with the near past average.
installment of January to March for
The KSE-100 index closed at 41,453 points
disbursement amongst 6.7 million

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school-going students having at are expected to offset the inflation spikes

least 70% school attendance. that emerged due to domestic supply
shocks. The benchmark index of
§ Under the scheme, at primary
international food commodity prices
level, Rs 2,000 is paid to a girl
declined again in June, 2023 led by price
student while Rs 1,500 is given to
a boy student. At the secondary decreases for major cereals and most types
level, a girl student and a boy of vegetable oils.
student are paid Rs 3,000 and Rs The timely measures taken by the
2,500, respectively. Similarly, at government to boost the agriculture sector
higher secondary level, the stipend (Kissan Package) would result into better
is Rs 4,000 and Rs 3,500 for the crop outlook and smoothen the domestic
female and male students, supplies, moreover, the expected political
respectively. stability and stable exchange rate would
§ PPAF through its 24 Partner help to achieve price stability. The inflation
Organizations has disbursed for the month of July 2023 is expected to
33,150 interest free loans remain in the range of 25-27 percent.
amounting to Rs 1.45 billion during 3.2 Agriculture
the month of June, 2023. Since
inception of interest free loan The input situation is expected to remain
component, a total of 2,402,497 favourable during the period except for
interest free loans amounting to Rs weather conditions. Farmers are advised to
89.51 billion have been disbursed manage their activities keeping in view the
to the borrowers. weather forecast. The government is
supporting agriculture sector by continuing
§ During Jan-Jun 2023 Bureau of
pro-farmer incentives.
Emigration and Overseas
Employment has registered 3.3 Industrial activity
393,455 workers and 78,863
The LSM cycle usually follows the cyclical
workers during June, 2023 for
movements in the main trading partners, but
overseas employment in different
since it is focussed on the main industrial
countries under Prime Minister
Youth Business & Agriculture Loan sectors and not on total GDP, it is
Scheme, the government has somewhat more volatile than the cyclical
disbursed Rs. 11,582 million till component of GDP in Pakistan's main
April, 2023 to 23,275 beneficiaries export markets. The upward movement of
for business and for the first time Fig-6: Relationship between CLI and LSM cycle
for Agriculture purpose.
140 104

Economic 130
120
102

100

Outlook 110
100
98

96
90
3.1 Inflation 80
94

92
Inflation in July 2023 is expected to ease 70
LSM Cycle (Le Scale)
out compared to in the month of June 2023. 60 90
CLI (Right Scale)
The recent decrease in administered prices 50 88
of petrol and diesel will be transmitted into 40 86
Jun-23

lower domestic prices of essential items by

Jul-21
Jul-19

Jul-20

Jul-22
Jan-20

Jan-21

Jan-22

Jan-23

impacting the transportation cost. Moreover,

the declining international commodity prices Source: PBS, OECD and EAW Calcula ons

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the CLI in the main export markets is 3.5 External

indicating the strength of the signal that
Amid the domestic and global scenarios,
economies are going towards the revival
exports of goods and services as per BOP
phase although still below the potential
data in the month of June are on decreasing
except China who successfully entered into
trend, which declined by 16.0% and 29% on
the phase of expansion. Following the CLI,
MoM and YoY basis, respectively. Similarly,
the cyclical pattern of LSM seems to follow
declining global commodity prices and
the cyclical pattern in the main export
contained domestic economic activities
markets in the month of May. It is expected
reflected in import numbers, decreased by
to further improve on a MoM basis,
17.7% and 54.9% on MoM and YoY basis,
however, on a YoY basis it is expected to
respectively. This is also reflected in
remain significantly negative on June 2023
contained trade deficit for goods and
due to the high base effect.
services. Despite the decline in workers'
3.4 Overall Economic Activity remittances, significant decline in trade
deficit reflected in surplus of current account
The Monthly Economic Indicator (MEI) is
for last two quarters of FY2023.
developed as a tool to distribute the past
annual GDP numbers, as reported by the For FY2024, it is expected that both exports
PBS, on a monthly/quarterly basis, and to and imports will gradually increase in
nowcast on that same frequency GDP coming months. Taking other factors into
growth for the FY in which the National account, the current account deficit will
Accounts are not yet available. Fig-7 remain in sustainable limit in FY2024.
presents the MEI on a monthly basis since
3.6 Fiscal
January 2019. It should be noted that some
of the data underlying the June MEI are still Despite a substantial decline in imports,
provisional and may be revised next month. LSM, and the overall slowdown in economic
activity, the government's effective resource
The MEI calculated for July-22 to June-23 is
mobilization strategy remained effective in
well aligned to the newly published national maintaining FBR tax collection growth at
accounts for FY2023. It indicates that since 16.6 percent, while non-tax grew by 31
April, MEI, following upward trend, is percent. Similarly, on the expenditure side,
showing the signs of improvement and is though mounting interest expenditure
expected to be positive in the coming remained a significant burden on fiscal
months. accounts, curtailing non-interest spending
triggered a primary deficit to narrow down.
Fig-7: Monthly Economic Indicator (MEI) For FY2024, the government is taking
various measures for domestic resource
20.0 19.2 mobilization. The government has unveiled
15.0 a comprehensive strategy for every sector
of the economy in an effort to revive
10.0 economic growth and move towards a
5.0 higher inclusive and sustainable growth
trajectory. Further different administrative
0.0 and policy measures have been introduced
-5.0 to increase the tax collection. Additionally,
-
SBP's withdrawal of restrictions on imports
-10.0 -9.2 will create demand for imports. All these
-15.0
measures will be supportive in improving
the revenues. On the expenditure side,
Mar-20

Mar-21

Mar-22

Mar-23
Nov-19

Nov-20

Nov-21

Nov-22
Jul-19

Jul-20

Jul-21

Jul-22

Jun-23

various austerity measures are in place that

Source: EA Wing’s Calculation will be helpful in reducing non-productive
expenditures.

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3.7 Final Remarks To achieve higher and sustainable

economic growth, it will require prudent and
FY2023, a challenging year has ended. The effective economic decisions, political and
government succeeded in ensuring the economic certainty, and continuation of
sustainability of the external and fiscal friendly economic policies along with
sectors through various tough decisions and enough foreign exchange financing. The
stabilization measures. In FY2024, the recent IMF approval of the Stand- By
government is gearing towards achieving Arrangement and other bilateral and
higher growth of 3.5% through various multilateral inflows will pave the way to
measures like the Kissan package, further improve the macroeconomic
industrial support, export promotion, environment and the confidence of
encouragement of the IT sector, and economic agents.
resource mobilization, etc.

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 ECONOMIC INDICATORS
26 July, 2023
Remi ances ($ bn)

Exports FOB ($ bn)

Imports FOB ($ bn)

Current Account Deficit ($ bn)

Source: SBP

FDI ($ mn)

Total Foreign Investment ($ mn)

Source: FBR & Budget Wing

FBR Revenue (Rs.bn)

Jun
Jun

Non-Tax Revenue (Rs.bn)

Source: SBP PSDP (Rs.bn)

Agriculture Credit (Provisional)

PSX Index

25-Jul-2023
25-Jul-2022

Market Capitaliza on (Rs. bn)

25-Jul-2023
25-Jul-2022

Market Capitaliza on ($ bn)

25-Jul-2023
25-Jul-2022

* : Formerly Karachi Stock Exchange (KSE) Source: PBS, PSX & SECP

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