During the fiscal year 2025-26, Pakistan’s economy demonstrated significant resilience and restored macroeconomic stability, achieving a provisional GDP growth rate of 3.70 percent compared to 3.18 percent the previous year. This positive trajectory was driven by a robust recovery across all major economic sectors, with agriculture expanding by 2.89 percent despite the challenges of the 2025 monsoon floods, the industrial sector growing by 3.51 percent on the back of a sharp 6.11 percent rebound in Large-Scale Manufacturing, and the services sector serving as a primary anchor with 4.09 percent growth. On the fiscal and external fronts, disciplined implementation of structural reforms under the IMF Extended Fund Facility (EFF) program helped narrow the fiscal deficit significantly to 0.7 percent of GDP, while securing a strong historic primary surplus of 3.2 percent of GDP.
Concurrently, the external sector strengthened with a current account surplus of US $72 million during July-March, bolstered by robust workers’ remittances reaching US $30.3 billion and a 19.8 percent surge in information technology exports. While average inflation was contained at 6.2 percent for the July-April period, emerging global energy shocks from the Middle East crisis triggered a temporary uptick toward the end of the year, highlighting the ongoing need for vigilant policy coordination and structural reform momentum.
For more details, check out the complete document: Pakistan Economic Survey 2025 – 26
