ECONOMIC Survey for the fiscal year 2024–25 paints a picture of cautious optimism for Pakistan’s economy.
Recording a GDP growth rate of 2.68 percent, the report reflects a gradual but real recovery, as acknowledged by Finance Minister Muhammad Aurangzeb.
The government deserves credit for improved macroeconomic management, fiscal stability and a sharp decline in inflation to just 4.6 percent this year.
These achievements, while notable, do not mask the mixed performance across various sectors of the economy.
Industries and services have shown encouraging signs.
The industrial sector grew by 4.8 percent, driven largely by a remarkable 40 percent uptick in the auto sector and modest gains in textiles and petroleum products.
The services sector also registered a 2.9 percent increase, buoyed by robust growth in Information and Communication (6.5 percent) and food services (4.1 percent).
These indicators suggest that parts of the economy are regaining momentum.
However, the performance of agriculture sector, which remains the backbone of our economy, tells a different story—one that should raise serious concern.
With a meagre growth of just 0.6 percent, agriculture has significantly underperformed, particularly for a country where a large portion of the population depends on this sector for livelihood.
This low growth is largely attributed to the decline in major crops such as wheat, cotton and maize.
While the effects of climate change are undeniably a factor, policy decisions have also contributed to the sector’s underperformance.
Farmers deserve a fair return on their labour and investments and the absence of a pricing policy undermines their economic viability.
Additionally, the rising costs of essential agricultural inputs—fertilizers, quality seeds and pesticides—have further squeezed farmers’ margins.
If left unaddressed, these issues will only threaten food security.
The road to sustainable and inclusive growth lies in a balanced approach.
Industry, agriculture and information technology each play a vital role and must be supported holistically.
As Finance Minister Muhammad Aurangzeb promised a turnaround in the next fiscal year, it is imperative that this commitment is translated into concrete action.
Inclusive growth can only be achieved when all segments of the economy are performing, especially agriculture, which employs a majority of our workforce.
The government must adopt a people-centric approach and pursue policies that empower small farmers.
This, combined with strategic investment in industry and the digital economy, will not only drive growth but also create much-needed employment opportunities for our youth and improve per capita income.
The steps taken now will determine whether the country can achieve sustained progress or remain trapped in cycles of uneven growth.
