Islamabad: The Finance Ministry’s latest economic update reveals signs of recovery and stability in the national economy, highlighting reduced inflationary pressures and improvements in fiscal metrics. The report, covering March 2025, showcases a notable decline in inflation, a reduced fiscal deficit, and increased revenue and remittances.

According to the report, the Consumer Price Index (CPI) inflation stood at 1.5 percent year-over-year in February 2025, a decrease from 2.4 percent in January, and a significant drop from 23.1 percent in February 2024. This decline is attributed to falling food and energy prices, contributing to overall price stability.

The fiscal deficit has been reduced to 1.7 percent of GDP for the July-January period of fiscal year 2025, down from 2.6 percent in the previous year. The primary surplus showed substantial growth, reaching 3,518.7 billion rupees, compared to 1,938.8 billion rupees last year.

Federal revenues increased by 45.3 percent, with the Federal Board of Revenue’s tax collection rising by 25.9 percent for the month. The policy rate remained steady at 12 percent, reflecting a stable monetary policy environment.

Remittances exhibited robust growth of 32.5 percent, with inflows reaching 24 billion dollars during the July-February fiscal period, compared to 18.1 billion dollars the previous year. The report underscores the resilience of the economy amid global challenges, as noted by the Finance Ministry.