Pakistan Economic Survey 2025-26: GDP Growth Recorded at 3.7% Amid Challenges

Islamabad: Finance Minister Muhammad Aurangzeb announced that Pakistan's economy demonstrated resilience with a GDP growth rate of 3.7 percent during the current financial year despite facing internal and external challenges. Launching the Economic Survey 2025-26 in Islamabad, he provided a comprehensive overview of the country's economic performance during the outgoing fiscal year. He was joined by Minister for Planning and Development Ahsan Iqbal, Minister for Information and Broadcasting Attaullah Tarar, and Minister of State for Finance Bilal Azhar Kayani. According to Radio Pakistan, the Finance Minister emphasized that the growth figure of 3.7 percent is the highest in the last four years, indicating that the economy continues its path from stabilization to growth. He highlighted that the size of the country's economy reached a record level of 126.9 trillion rupees or 452.1 billion dollars. The per capita income also increased to 1901 dollars from 1751 dollars last year. The Finance Minister detailed the sectoral performance, noting that agriculture grew by 2.89 percent despite the challenges of floods, while the industry grew by 3.51 percent. The livestock sector showed consistent growth, and large-scale manufacturing saw a 6.1 percent increase, the highest in the last four years, with positive growth in sixteen out of twenty-two manufacturing sectors. Muhammad Aurangzeb highlighted the strength of the services sector, which grew by 4.9 percent, the highest in the last four years. The Information and Communication Services sector specifically saw a 7.52 percent growth. On the fiscal side, he reported a fiscal deficit of 0.7 percent for the first nine months of the current financial year, with revenue collection by FBR growing by 10.1 percent and a 23 percent reduction in markup payments. On the external front, the Finance Minister noted a current account surplus of seventy-two million dollars during the first nine months of the financial year, along with an increase in remittances and investments in th e Roshan Digital Account. IT exports surpassed 3.8 billion dollars, with expectations to reach 4.5 billion dollars. Foreign exchange reserves stand at 17.1 billion dollars, projected to rise to eighteen billion dollars by June's end. Muhammad Aurangzeb also reported increased demand across several sectors, including a ten percent rise in cement demand, seventeen percent in fertilizers, five percent in petroleum products, and nine percent in mobile phones. Regarding private sector credit, it reached around 934 billion rupees, reflecting a 22 percent increase, with agricultural lending up by 15 percent. The government is advancing the Zarkhez-e scheme to support small farmers. In the housing sector, the Minister mentioned that eleven billion rupees had been disbursed under the affordable housing scheme, with 90 billion rupees approved. He also noted an improvement in the literacy rate, which rose to 63 percent, while the proportion of out-of-school children decreased to 28 percent. In the health sector, the i nfant mortality rate dropped from 60 to 47 per 1,000 births, and immunization coverage reached 73 percent.