Pakistan economy to grow 2.4 percent in fiscal year 2024, economic survey shows

A customer buys vegetables from a stall at a market in Karachi on July 3, 2023. (AFP/File)
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Updated 11 June 2024
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Pakistan economy to grow 2.4 percent in fiscal year 2024, economic survey shows

  • Pakistan’s coalition government expected to lay out ambitious fiscal targets in the budget on Wednesday
  • Pakistan’s current account registered three straight months of surpluses until April, Finance Minister Aurangzeb says

ISLAMABAD, June 11 : Pakistan’s economy is likely to have expanded by 2.4 percent in the fiscal year that ends this month after contracting 0.17 percent during the previous year, the government’s economic survey showed on Tuesday, a day before the country’s federal budget is unveiled.

The growth estimate is in line with the State Bank of Pakistan’s full-year projection. The SBP cut its key interest rate by 150 basis points on Monday, in its first rate reduction in nearly four years as it strives to boost the economy.

Pakistan’s current account deficit narrowed sharply by 95 percent to $200 million in the July to April period of FY24 versus $3.9 billion in the same period a year ago, the survey showed.

The current account registered three straight months of surpluses until April, and May could be another month of surplus, Finance Minister Muhammad Aurangzeb said.

The government in its monthly economic review at the end of May said it was targeting economic expansion of 3.6 percent for the new fiscal year starting in July, amid an uptick in economic activity.

Pakistan is in talks with the IMF for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy that is growing at the slowest pace in the region.

Prime Minister Shehbaz Sharif has publicly expressed his commitment to tough reforms since coming to power in a February election. These would be critical to securing the IMF loan, but high prices, unemployment and a lack of new job opportunities have piled political pressure on his coalition government.


Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

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Pakistan approves upgrades to national ID cards in push to strengthen digital ecosystem

  • The amendments allow for QR-based verification, authentication controls, biometric expansion, and card format updates
  • The measures advance integrated digital governance through National Data Exchange Layer and broader digital ID ecosystem

ISLAMABAD: Pakistan has notified amendments to the National Identity Card and Pakistan Origin Card rules and introduced QR-based verification and stronger fraud controls, the National Database and Regulatory Authority (NADRA) said on Tuesday, amid efforts to strengthen the country’s digital ecosystem.

The amendments modernize Pakistan’s identity document framework by legally embedding QR-based verification, strengthening authentication controls across digital services, expanding biometric recognition and updating card formats for key citizen categories.

A core reform is the statutory introduction of the Quick Response (QR) code as a defined security and verification feature, authorizing the use of “QR code or any other technological feature” in lieu of current microchip enabling NADRA to adopt evolving verification technologies without repeated rule amendments.

This QR-enabled capability directly strengthens Pakistan’s Digital ID ecosystem and supports interoperability through the National Data Exchange Layer, according to the national database regulator.

“This establishes a robust legal basis for quick and secure verification of identity credentials in both offline and online environments,” NADRA said.

“This will also enable all citizens to carry similar card instead of currently prevalent two types of national identity cards one of which is with microchip and the other without.”

Pakistani state media reported in August that the country was developing digital identities of all its citizens to enable secure and efficient payments. The measures came as part of a broader effort to digitize the economy for greater transparency.

QR-based credentials allow rapid front-end validation of identity attributes in service delivery settings, while also enabling back-end systems to confirm authenticity and status through trusted exchanges. This is expected to improve speed, transparency and consistency of identity verification across government entities and regulated sectors, reduce manual handling, and lower the risk of fraud and impersonation, according to NADRA.

The amendments also strengthen the enforcement effect of card suspension. The Rules now clarify that where a card is suspended, all verification, authentication and related services linked to that card shall stand suspended forthwith. This closes a key risk area by ensuring that once a card is suspended, it cannot continue to be used through digital verification channels or institutional authentication processes.

“The amendments also introduce standardized identification for residents of Azad Jammu and Kashmir by requiring an inscription indicating ‘Resident of Azad Jammu and Kashmir’ in the manner specified by the Authority, thereby ensuring uniform geographic identification on the document,” NADRA said.

“Overall, these amendments strengthen the legal and technological foundations of Pakistan’s identity system by enabling secure QR-based verification, reinforcing the integrity of digital authentication services, improving biometric assurance,” it said. “They also advance readiness for integrated digital governance by supporting structured interoperability through the National Data Exchange Layer and a broader Digital ID ecosystem.”