On the back of good news that Pakistan’s inflation rate has dropped to single digits after 34 long months of high commodity prices for basic household items, we have received yet another indication that the economy is slowly but surely heading in the right direction. Reports on Tuesday indicated that merchandise exports increased nearly 16 percent to $2.74 billion in August. This increase in exports has led to a corresponding decrease in Pakistan’s trade deficit, which contracted to $24 billion in the financial year 2024, compared to $27.47 billion in the preceding year.

While high imports remain a concern for Pakistan’s economy, the improving economic conditions point towards a future where Pakistan can further reduce this number, easing the pressure on foreign exchange reserves. While these figures are subject to fluctuation, and the PMLN government will be judged on them over its four-year tenure before it begins campaigning for a new election, at face value, we can confidently say that economic indicators are moving in the right direction after the previous government’s disastrous tenure, which saw skyrocketing inflation and a degradation of our manufacturing and trading base.

These numbers are not being released by the Pakistani government in isolation. Financial bodies, from lending institutions to international banks and other monetary organizations, have all recognized that Pakistan’s fundamental economic indicators are trending towards improvement. This should serve as another benchmark for the government and a proof of concept that its wide-ranging economic reforms will bear fruit in the future. The PMLN government should leverage these figures to convince traders, businessmen, and other stakeholders to support these economic reforms, ensuring that Pakistan’s economy reaches its full potential.