Pakistan’s economic landscape continues to experience fluctuations, with key market statistics and economic indicators offering valuable insights into the country’s financial health. As of March 2025, various metrics show both progress and challenges across multiple sectors, reflecting the overall state of Pakistan’s economy.
As of March 21, 2025, the Pakistani Rupee (PKR) interbank rate stood at 280.26 against the US Dollar, slightly higher than the previous week’s rate of 280.22. On the stock market front, the KSE100 Index rose to 118,442.18 points from 115,536.17 on March 14, 2025, indicating positive investor sentiment. Moreover, the average daily trading volume surged to 507,638,505 shares, up from 337,210,196, demonstrating a significant increase in market activity.
Gold prices in Karachi saw an uptick, reaching Rs 273,319 per 10 grams compared to Rs 269,204 the previous week. In the foreign exchange markets, the exchange rate for the US Dollar in the open market rose slightly to 282.06 PKR from 281.86 PKR, while the Euro and British Pound stood at 305.89 PKR and 365.28 PKR respectively. Among other foreign currencies, the Japanese Yen was valued at 1.89 PKR, and the Saudi Riyal at 75.26 PKR.
On March 19, 2025, the Pakistan government held a Treasury Bill auction, with the cutoff yield for the 3-month bills standing at 11.8242% and the 6-month bills at 11.6699%. For longer-term government securities, the 10-year Pakistan Investment Bonds (PIBs) saw a yield of 12.79%, the same as in the previous month’s auction. These rates reflect the broader monetary policy environment as set by the State Bank of Pakistan (SBP).
The Consumer Price Index (CPI) data for February 2025 shows that inflation continues to present challenges. The CPI stood at 263.95, reflecting a month-on-month decrease of 0.83% but an annual rise of 1.52%. This decrease indicates a slowing in inflationary pressures compared to earlier months. Meanwhile, the Wholesale Price Index (WPI) registered a slight decline, falling by 0.18% month-on-month in February, reaching 311.94.
In terms of foreign trade, Pakistan’s exports showed a drop in February 2025, amounting to USD 2,491 million, down from USD 2,951 million in January. Imports also saw a decline, totaling USD 4,810 million in February, compared to USD 5,258 million the previous month. This resulted in a trade deficit of USD 2,319 million for February, which is slightly higher than January’s deficit of USD 2,307 million.
Worker remittances, however, demonstrated a positive trend, with inflows reaching USD 3,119.04 million in February, compared to USD 3,003.42 million in January. Foreign investment also saw a significant decline, with total foreign investment falling to USD 60.77 million in February, down from USD 99.20 million in January.
In terms of Pakistan’s fiscal performance, the GDP growth rate for FY24 stood at 2.50%, a considerable recovery from the negative growth of -0.22% recorded in FY23. The agriculture sector grew by 6.18%, while the services sector saw a 2.35% increase. However, the industrial sector continued to face challenges, with growth in industry at just 1.03%.
The country’s trade balance has improved somewhat, with a reduction in the annual deficit from USD 27,474 million in FY23 to USD 24,121 million in FY24. Pakistan’s current account balance also showed signs of improvement, narrowing its deficit to USD -681 million from the larger deficit of USD -3,275 million in FY23.
Pakistan’s foreign exchange reserves, managed by the SBP, stood at USD 11,146.80 million as of March 14, 2025, up slightly from USD 11,097.90 million the previous week. This is part of the broader effort to stabilize Pakistan’s external accounts and provide a buffer against global financial fluctuations.
Inflation remains a key concern, with an annual inflation rate of 23.41% in FY24, down from the previous year’s 29.18%. Despite this reduction, inflation continues to pose significant challenges to the purchasing power of Pakistan’s citizens.
Pakistan’s economy is experiencing a mix of positive and challenging trends as the country navigates through a complex fiscal and trade environment. With efforts to reduce inflation and external debt, along with initiatives aimed at stimulating economic growth in agriculture and services, the outlook remains cautiously optimistic. The data from March 2025 highlights the importance of continued reforms and strategic economic planning to ensure sustained growth in the coming months.