Introduction
As of April 10, 2025, the Economic survey in Pakistan in 2025, has not yet been released. Traditionally, the Ministry of Finance publishes this comprehensive report in June, prior to the announcement of the federal budget. The Economic Survey provides an in-depth analysis of Pakistan’s economic performance over the past year, covering key sectors such as agriculture, industry, services, fiscal developments, and external accounts. It serves as a critical document for policymakers, economists, and stakeholders to assess the country’s economic trajectory and formulate informed strategies for sustainable growth. For the most current information and detailed insights, stakeholders are advised to consult the official website of the Ministry of Finance or reputable financial news sources following the survey’s publication.
ECONOMIC SURVEY IN PAKISTAN IN 2025 ?
GDP Growth Trends
In 2025, Pakistan’s GDP growth remains modest. The economy has shown some signs of recovery post-COVID-19 and global inflation waves, with projected growth around 3-3.5%, mainly driven by agriculture and remittances. However, structural issues continue to suppress higher growth potential.
Inflation and Cost of Living
Inflation continues to be a major concern. In 2025, Pakistan faces persistent double-digit inflation, driven by rising fuel prices, food shortages, and currency depreciation. This has directly impacted the cost of living, making basic necessities unaffordable for many citizens.
Exchange Rate Volatility
The Pakistani Rupee has depreciated further against the US Dollar in 2025. Although some stabilization measures have been introduced, uncertainty in political and economic policies continues to cause currency fluctuations, affecting import prices and investor confidence.
Unemployment Rate
The unemployment rate remains high, especially among youth and educated graduates. While digital freelancing and gig economy opportunities have increased, they have not been enough to absorb the growing labor force.
Agriculture Sector
Agriculture remains a backbone of Pakistan’s economy, employing a large portion of the population. However, outdated farming practices, water shortages, and climate change have reduced productivity in 2025. Some reforms in irrigation and seed technology are underway.
Industrial Sector
The industrial sector is struggling due to energy shortages, high production costs, and low export competitiveness. Textile exports have declined, although new government subsidies are being introduced to support small and medium-sized enterprises (SMEs).
Services Sector
The services sector is showing resilience, especially in IT, digital services, and e-commerce. Freelancing and remote work platforms like Upwork and Fiverr are offering employment to many youth, helping Pakistan earn foreign exchange through digital exports.
Energy Crisis
Pakistan in 2025 is still facing an energy crisis. Load-shedding in rural and even urban areas affects productivity. The reliance on imported fuel, combined with global oil price hikes, has made electricity costly, despite investments in solar and hydropower.
Public Debt and IMF Loans
Pakistan’s public debt has increased, and the country remains heavily reliant on International Monetary Fund (IMF) support. Conditions for IMF loans include subsidy cuts, tax reforms, and privatization of state-owned enterprises—steps that are controversial but necessary.
Foreign Direct Investment (FDI)
FDI in Pakistan has declined due to political instability, security concerns, and a weak legal framework. However, certain sectors like renewable energy, telecom, and fintech continue to attract limited but promising investments.
CPEC and Regional Trade
The China-Pakistan Economic Corridor (CPEC) remains a vital long-term project. While progress has slowed due to financing issues, several infrastructure projects are operational, enhancing regional connectivity and trade potential, especially with Central Asia.
Remittances
Remittances from overseas Pakistanis continue to play a crucial role in the economy. Despite economic challenges in Gulf countries, remittances have remained steady and are helping to bridge the trade and fiscal deficit.
Poverty and Inequality
Poverty levels have worsened in 2025 due to inflation and unemployment. The wealth gap is growing, and social safety nets like Ehsaas Program and BISP have been expanded but still lack sufficient funding to make a long-term impact.
Education and Human Capital
The education sector continues to suffer from low investment and outdated curricula. With a large youth population, Pakistan needs to invest more in skills development to boost productivity and create a knowledge-based economy.
Digital Economy and Innovation
Pakistan’s digital economy is a bright spot in 2025. Startups in fintech, e-commerce, and edtech are emerging. Government initiatives like “Digital Pakistan” and tax relief for IT exporters are encouraging innovation and entrepreneurship.
Tourism Potential
Although security and infrastructure challenges exist, tourism has potential for boosting the economy. Northern areas continue to attract local and foreign tourists, but more investment is needed in hospitality and transport.
Trade Deficit
Pakistan continues to face a large trade deficit due to high imports and low exports. Efforts to promote local manufacturing and reduce reliance on imported goods have been partially successful, but more reforms are needed.
Climate Change and Economic Impact
Climate change poses a major threat to Pakistan’s economy. Floods, droughts, and changing weather patterns have already disrupted agriculture and infrastructure. Climate adaptation and resilience planning is urgently needed.
Political Stability and Economic Confidence
Political uncertainty in 2025 is a key factor affecting economic growth. Frequent changes in government policies, lack of consistency, and corruption reduce investor confidence and delay development programs.
Future Outlook
Despite serious challenges, Pakistan holds tremendous potential. With its large young population, strategic location, and digital transformation, the country can achieve sustainable growth—if it pursues consistent and bold reforms.
Conclusion
The economic conditions of Pakistan in 2025 reflect a fragile yet hopeful scenario. While macroeconomic instability, inflation, and political issues weigh heavily on growth, there are positive developments in the digital sector and remittances. With smart policymaking and national unity, Pakistan can navigate through these challenges and build a more stable and prosperous future.