As Pakistan navigates through the global economic landscape, key market stats and economic indicators offer insight into the nation’s financial performance and outlook. In this article, we explore the latest figures on foreign exchange reserves, stock market performance, inflation trends, and more, shedding light on the economic condition of the country for March 2025.
The Pakistani Rupee (PKR) remained relatively stable against the US Dollar in the interbank market, with the exchange rate at 280.1646 PKR on March 28, 2025, compared to 280.2605 PKR on March 21, 2025. This marginal change suggests stability in the exchange rate, which is crucial for businesses and consumers dealing with foreign currencies. The KSE-100 Index, which is a benchmark for Pakistan’s stock market performance, witnessed a slight dip during the same period, closing at 117,806.75 points on March 28, down from 118,442.18 points on March 21, 2025. The average daily volume of trades also saw a decrease, falling from 507,638,505 shares to 316,697,266 shares, indicating a drop in market activity. Gold prices showed a notable increase, with the price per 10 grams rising to Rs. 277,246 on March 28, from Rs. 273,319 on March 21, 2025. This surge in gold prices could be attributed to global market fluctuations and an increased demand for safe-haven assets.
The State Bank of Pakistan (SBP) has maintained a stable interest rate environment, with the 6-month KIBOR (Karachi Interbank Offered Rate) at 12.13% as of March 28, 2025, up from 12.01% the week prior. The government also saw slight changes in the yields for short-term treasury bills (T-bills) during the latest auction on March 26, 2025. The 1-month T-bill yield increased to 12.3898%, while the 3-month T-bill yield stood at 12.0100%. In comparison, long-term government bonds, such as the 10-year Pakistan Investment Bond (PIB), saw a small dip, with the yield at 12.31%, down from 12.32% on March 21. These slight adjustments indicate the SBP’s cautious stance in managing inflation and controlling economic growth.
Pakistan’s foreign exchange reserves continued to show a decline, with the total reserves falling to $15.55 billion as of March 21, 2025, from $16.02 billion the previous week. Both the SBP and bank reserves decreased, reflecting the ongoing challenges in managing external debt and ensuring liquidity for the country. On the trade front, Pakistan’s trade balance remained negative, with imports continuing to outpace exports. In February 2025, exports amounted to $2.49 billion, down from $2.95 billion in January, while imports stood at $4.81 billion, a decrease from $5.26 billion the previous month. The trade deficit remains a significant concern for policymakers striving to narrow the gap between imports and exports.
Inflation data from February 2025 shows that the Consumer Price Index (CPI) stood at 263.95, a slight decline from January’s 266.17. The month-on-month (MoM) change in the CPI was -0.83%, signaling a reduction in inflationary pressures. However, the year-on-year (YoY) increase in the CPI was 1.52%, reflecting moderate inflation. The Sensitive Price Indicator (SPI), which tracks the prices of essential goods, showed a similar trend. The SPI stood at 318.97 in February, down from 322.03 in January. Despite these drops, the YoY change remains positive at 0.68%, indicating that essential goods have become more expensive compared to the previous year.
Pakistan’s external debt remained relatively stable, standing at $131.07 billion at the end of December 2024, compared to $133.68 billion at the end of September 2024. On the investment side, foreign direct investment (FDI) totaled $60.77 million in February 2025, down from $99.20 million in January. These figures highlight the challenges in attracting long-term foreign investments amid global uncertainties.
Pakistan’s economy showed modest growth, with the GDP growth rate reaching 2.50% in FY24, compared to a contraction of 0.22% in FY23. Agriculture, which has been a bright spot in the economy, posted strong growth at 6.18% in FY24, up from 2.24% in FY23. Meanwhile, the services sector grew by 2.35%, while manufacturing faced challenges, growing at a slower pace of 3.10%.
The data for March 2025 presents a mixed picture of Pakistan’s economic health. While the stock market and foreign reserves face some challenges, inflation has slightly reduced, and the agricultural sector remains a key growth driver. Moving forward, Pakistan’s policymakers will need to focus on reducing the trade deficit, boosting exports, and attracting foreign investments to ensure sustained economic growth and financial stability.