ICMAP releases ‘Economic Outlook’, proposes key priority actions

KARACHI: The Research and Publications Department of the Institute of Cost and Management Accountants of Pakistan (ICMAP) has unveiled its latest publication, Pakistan’s Economic Outlook 2025. This comprehensive report outlines ten key priority actions for the Government of Pakistan to focus on in 2025, alongside insights gathered through an ICMA Poll capturing the perspectives of professionals from various sectors, including corporate, industry, and government.

The poll sheds light on critical topics such as challenges, opportunities, and priority reform areas for 2025. Respondents expressed a blend of concerns and optimism, with 50% highlighting political instability, rising external debt, and structural inefficiencies as major challenges.

While 35 percent foresee steady recovery driven by reforms, 15 percent remain optimistic about leveraging trade, technology, and Pakistan’s young workforce.

Among the identified challenges, political instability emerged as the most pressing concern (88%), followed by inflation and business sustainability issues. On the other hand, opportunities such as digital transformation (57%), export growth (24%), and foreign investment (19%) were noted, contingent upon addressing regulatory barriers. Key priorities highlighted by respondents include energy sector reforms (47%), taxation reforms (29%), and industrial modernization (18%).

ICMA has proposed a strategic action plan emphasizing political stability, adherence to the IMF’s reform agenda, and critical energy sector reforms, including renegotiation of contracts with independent power producers (IPPs). Privatizing loss-making state-owned enterprises, enhancing governance, accelerating FBR digitization, and enabling investment-friendly policies are among the recommendations to ensure sustainable development.

The report also includes the Pakistan Economic Scorecard, comparing key indicators from FY2024 and FY2023. Despite challenges, improvements were noted in GDP growth (2.52% from -0.22%), agricultural performance (6.36% from 2.22%), and inflation moderation (23.4% from 29.2%). Fiscal performance improved with higher tax collection and remittances, while the current account deficit narrowed significantly.

However, challenges persist, including high policy rates (22%), exchange rate depreciation (Rs. 282.90/USD), and a rising debt burden (Rs. 84,907 billion). ICMA emphasizes that addressing these issues through consistent reforms and effective governance is crucial to unlocking Pakistan’s economic potential.

Copyright Business Recorder, 2025