Karachi: Engro Corporation Limited released its interim financial statements for the nine months ending September 30, 2024, citing macroeconomic challenges both domestically and globally, along with developments related to the company’s operational outlook.

According to the directors’ report, the global economic landscape is showing resilience with a decline in consumer price inflation, resulting in improved household spending. However, ongoing geopolitical risks, including the conflict in Ukraine and evolving tensions in the Middle East, pose potential risks that could disrupt oil prices and investment flows. These factors, combined with unemployment fluctuations, are expected to impact global financial markets.

According to information available from the Pakistan Stock Exchange (PSX), Pakistan’s economy demonstrated signs of improvement during this period, with inflation dropping to single digits following strict fiscal and monetary policies. The rebuilding of foreign reserves has been supported by positive developments in exchange market conditions. The State Bank of Pakistan, in response to declining inflation, cut its policy rate by 450 basis points since June 2024.

The directors’ report also highlighted Pakistan’s successful negotiation with the International Monetary Fund (IMF) for a new package valued at USD 7 billion, aimed at improving economic reforms and promoting sustainable development. The program emphasizes broad-based tax reforms, productivity enhancements, and improved competitiveness.

Despite these improvements, the report noted persistent structural challenges, including governance issues and constraints on private sector growth. Fiscal sustainability remains a key focus, with taxation policies adjusted to ensure balance. The state continues to maintain a notable presence in the economy, further impacting investment dynamics.

Acknowledging the support of shareholders, the directors expressed appreciation for the commitment and contributions of the company’s employees and stakeholders.