Beyond the Numbers: Pakistan’s Economic Outlook in 2024

Pakistan’s economic outlook in 2024 marks a turning point, with a series of key developments setting the stage for a more robust and self-reliant future. From the ambitious National Economic Transformation Plan (NETP) to remarkable achievements in the stock market, textile exports, and infrastructure, Pakistan is on a promising path of growth and stability.

National Economic Transformation Plan: Vision for Sustainable Growth

The National Economic Transformation Plan (NETP) of 2024 is not just about setting numbers, it’s about crafting a vision for Pakistan’s long-term economic prosperity and regional outlook. With a focus on self-reliance, the NETP outlines clear targets for 2025, including a 6% GDP growth, a per capita income of $2405, and inflation reduced to 6.2%. Exports are projected to reach $63 billion, remittances are expected to stay strong at $39.8 billion, and foreign direct investment (FDI) is targeted at $29 billion. With job creation set to reach 1.5 million annually and the launch of 10,000 startups per year, the plan is aimed at creating a dynamic, resilient economy.

Also See: Govt unveils ‘Uraan Pakistan’ 5-year National Economic Transforma­tion Plan

PSX Performance: A Record-Breaking Year

The Pakistan Stock Exchange (PSX) has defied expectations in 2024, with a striking 84.34% surge in returns, making it the second-best performing market globally. The market is trading at a robust 117,008 points, and 75,000 new trading accounts have been opened this year alone. 2024 has been a record-breaking year, with PSX continuing to show immense potential for growth as it heads into 2025.

Inflation Rate Takes a Sharp Decline

Pakistan’s inflation rate dropped dramatically in 2024, providing much-needed relief to the economy and greatly improving the economic outlook. From 29.7% in December 2023, inflation has fallen to a much more manageable 4.1% by December 2024. This drop is a clear reflection of better economic management, spearheaded by government policies and financial institutions, which have worked to stabilize prices and provide a more predictable economic environment for consumers and businesses alike.

Textile Exports Surge Amid Stabilized Prices

Pakistan’s textile sector has seen significant growth in 2024, with exports reaching $15.97 billion—a $1.3 billion increase over the previous year. The surge is attributed to a stable dollar and better control over raw material prices, which have helped reduce fabric costs. This has made Pakistani textiles more competitive on the international market, contributing significantly to the country’s overall economic growth.

Chashma Nuclear Power Plant: Fueling Employment and Energy

The Chashma Nuclear Power Plant’s Unit-5, set to create 40,000 jobs during its construction phase, is another major development for Pakistan. This plant is not just about energy generation but is part of a broader strategy to boost employment and strengthen Pakistan’s energy infrastructure. Additionally, 41% of the total investment in Pakistan for FY-25 will come from China, underscoring the importance of bilateral ties and economic collaboration. Pakistan’s responsible use of nuclear technology for peaceful purposes continues to shine through in projects like these.

Gwadar’s Global Connectivity: A New Era of Trade

Gwadar, already a key player in Pakistan’s economic future, is about to gain a global footprint with international flight operations starting from January 10, 2025. A direct flight from Gwadar to Muscat will kick off, with additional routes to China, Oman, and the UAE on the horizon. This move is expected to significantly enhance economic activity in the region, particularly in trade and tourism, and further cement Pakistan’s ties with its international partners, especially China.

Reko Diq: A Game-Changer for Balochistan’s Mining Sector

In a landmark move, Pakistan has sold a 15% stake in the Reko Diq project to Saudi Arabia for $540 million, with an additional $150 million investment to revitalize Balochistan’s mining sector. This high-stakes collaboration is set to bolster Pakistan’s mining capabilities, bringing much-needed investment into the region and helping to unlock its vast mineral potential. The involvement of foreign countries in this project will also help create new jobs and infrastructure in the area.

BISP: A Stronger Safety Net for the Underprivileged

The Benazir Income Support Program (BISP), a lifeline for many underprivileged Pakistanis, has increased its quarterly installment from Rs. 10,500 to Rs. 13,500 beginning January 2025. This increase aims to empower Pakistan’s most vulnerable segments by providing them with greater financial stability. Through BISP, the government is working to equip the underprivileged with the tools needed for self-reliance and sustainable economic participation.

ADB Funding: Powering Up the Energy Sector

The Asian Development Bank (ADB) has committed a $200 million loan to upgrade Pakistan’s power sector infrastructure, specifically focusing on LESCO, MEPCO, and SEPCO. The loan will help modernize the power distribution networks, ensuring a more reliable and efficient supply of electricity to households and businesses across Pakistan. This investment will be a key driver of future economic growth by improving the quality of service in the energy sector.

Pakistan Railways: Building for the Future

Pakistan Railways is set for a major upgrade in 2025, with the addition of 80 new high-capacity freight wagons and 32 air-conditioned standard passenger coaches. These additions will improve the railways’ ability to transport goods and passengers more efficiently, boosting revenue and performance. The upgraded infrastructure will also enhance Pakistan’s connectivity, fostering smoother trade and travel across the country.

As Pakistan heads into 2025, the combination of strategic investments, infrastructure projects, and economic reforms paints a picture of a nation on the rise. From a record-breaking stock market to expanding international trade routes, Pakistan is carving out a path toward economic self-sufficiency and long-term growth. While challenges remain, the momentum built in 2024 sets the stage for a brighter, more prosperous future.