MACROECONOMIC OVERVIEW

Pakistan’s economy is showing signs of improvement with a stable exchange rate and a decline in inflation, signaling growing resilience and improved macroeconomic activity. The International Monetary Fund (IMF) conditions as part of a US$3 billion Stand-By Arrangement (SBA) paved the way for this stability. Pakistan is currently negotiating with the IMF for a larger arrangement, which should result in further economic improvement. However, this may be followed by more economic restrictions and taxes on various sectors, to cool the still high inflation.

CITY PROFILE

Karachi, with a population of approximately 20.3 million according to the 2023 digital census, stands as Pakistan’s most expansive and urbanized city. Karachi’s population growth rate was 2.4%, against the national 2.55%. The city’s literacy rate and Human Development Index (HDI) at 75% and 0.674, are higher than the national average of 62% and 0.557, respectively. The city has a labor force of approximately eight million people from across the country engaged in various sectors such as manufacturing, services, and trade.