Finance Minister Muhammad Aurangzeb on Thursday said Pakistan’s economy demonstrated resilience and achieved stronger-than-expected performance during fiscal year 2025-26 despite domestic challenges, global economic uncertainty, and the impact of the Middle East crisis.
Speaking at a briefing on the country s economic performance, Aurangzeb said Pakistan recorded a GDP growth rate of 3.7% during FY2025-26. He noted that the government had initially expected growth to exceed 4%, but regional instability and global economic headwinds affected overall performance.
The finance minister said Pakistan’s economy expanded to $452.1 billion during the fiscal year, while annual per capita income increased from $1,751 to $1,901.
Providing sector-wise details, he said the cement industry recorded 10% growth, the fertiliser sector expanded by 17%, and the petroleum sector grew by 5%.
Aurangzeb highlighted improvements in the external sector, stating that Pakistan’s current account posted a surplus of $72 million during the July-March period. He added that positive growth trends were observed across 16 sectors, including food and textiles, while 16 of the country’s 22 manufacturing industries showed improvement.
The services sector grew by 4.9%, supported by increasing economic activity and the expansion of the digital economy.
On the fiscal front, the minister said Pakistan maintained fiscal discipline, resulting in a fiscal deficit of 0.7% and a primary surplus of 3.2% of GDP during the July-March period.
Inflation continued to ease significantly, with average inflation recorded at 6.7% during July-May. Meanwhile, Federal Board of Revenue (FBR) collections increased by 10.1%, reflecting improved revenue generation efforts.
Foreign exchange reserves stood at approximately $17.1 billion and are projected to reach $18 billion by the end of June. As of May 29, reserves had risen to $17.2 billion, marking a 49% increase compared to the previous year and providing an import cover of 2.75 months.
The minister praised overseas Pakistanis for their contribution to the economy, noting that remittances reached a record $33.9 billion during the July-May period. Monthly remittance inflows hit an all-time high of $4.3 billion in April 2026.
Pakistan’s IT and technology-related exports reached $3.8 billion during July-April, while freelance exports generated $959 million, approaching the $1 billion mark. Deposits under the Roshan Digital Account initiative rose to a record $12.7 billion.
Aurangzeb also said the Pakistan Stock Exchange’s investor base surpassed 563,000, while 11 new companies were listed during the year. More than 39,000 new companies were registered, taking the total number of registered firms in the country to over 297,000.
Private sector credit increased by Rs934 billion during July-March, while agricultural financing reached Rs2.162 trillion during the same period.
The minister announced that the allocation for the Benazir Income Support Programme (BISP) had been increased to Rs722.5 billion to support low-income households. He also said progress was being made on the privatisation of state-owned enterprises, including Pakistan International Airlines (PIA), First Women Bank Limited (FWBL), and power distribution companies.
Aurangzeb said the government’s rightsizing initiative had resulted in the merger of ministries and the closure of several departments, including the Pakistan Public Works Department (PWD).
He further stated that Pakistan’s literacy rate had reached 63% and acknowledged the long-standing support provided by the United Arab Emirates.
Planning Minister Ahsan Iqbal, speaking on the occasion, said Pakistan had yet to develop a truly export-led economy and stressed that long-term growth depended on policy continuity and political stability.
FBR Chairman Rashid Mahmood Langrial said revenue collection increased from $32.6 billion in June 2024 to $46.4 billion in June 2026, representing growth of 46% over two years.
Aurangzeb concluded by saying that IT exports are expected to reach $4.5 billion, while an increase in machinery imports reflects growing industrial and economic activity.
