February Economic Update and Outlook.

The February 2024 Economic Update and Outlook report highlights several discrepancies between the analysis and statistical data presented by the caretaker government. Despite claims of reducing unproductive expenditure, the data shows a 5.9% decline in the Public Sector Development Programme and a 4.3% increase in the fiscal deficit. While tax and non-tax revenue did increase, it is important to note that the budgeted inflation was lower than the actual inflation, which would naturally raise tax collections. The report also mentions that large-scale manufacturing activity and exports have shown some growth, but there are underlying issues such as negative LSM territory and artificially controlled exchange rates that have impacted these indicators. Inflation and current account deficit have worsened, and remittances have declined. The report concludes that the caretaker government's claim of stabilizing the economy is limited to the successful completion of the first review under the Stand-By Arrangement, and structural reforms are needed to address the economic challenges. [Extracted from the article]