Federal Finance Ministry has released its report on the economic performance of provinces for the first quarter of the fiscal year 2024-25. According to the report, Khyber Pakhtunkhwa (KP) has shown an impressive economic performance, with a surplus budget of Rs 103 billion leaving Punjab behind with major deficit of Rs 160 billion. The report highlights KP’s impressive economic performance, with a surplus budget of Rs 103 billion, a notable improvement from the previous year’s deficit of Rs 10 billion. Khyber Pakhtunkhwa: Recorded a surplus of Rs 103 billion, with revenue of Rs 316 billion and expenditures of Rs 212 billion. Punjab: Faced a deficit of Rs 160 billion, with revenue of Rs 866 billion and expenditures of Rs 1026 billion.

Sindh: Recorded a surplus of Rs 131 billion, with revenue of Rs 568 billion and expenditures of Rs 437 billion. Balochistan: Achieved a surplus of Rs 85 billion, with revenue of Rs 168 billion and expenditures of Rs 83 billion. It’s worth mentioning here that Pakistan’s economy grew by 2.52% in the fiscal year 2024, primarily owing to strong growth in the agriculture sector. The agriculture sector of the country saw better crop yields contributing to the overall economic performance. In the final quarter –April to June 2024– the country’s Gross Domestic Product (GDP) increased by 3.07%, Arif Habib Limited (AHL) said citing the Pakistan Bureau of Statistics (PBS).

The first three quarters of fiscal year 2024 also experienced positive, yet varying growth rates: 2.69% in the first quarter, 1.97% in the second quarter, and 2.36% in the third quarter. As the country was grappling with economic challenges, the agriculture sector played a crucial role in achieving this year’s growth. IMF recently approved a 37-month Extended Fund Facility for Pakistan amounting to SDR 5.32bn (USD 7 billion), the second highest amount ever agreed upon under any IMF programme in terms of SDRs. Following this approval, an initial disbursement of SDR 760 million (USD 1.1bn) has been released.

Credit: Independent News Pakistan