Pakistan Economic Survey 2025–26: Pakistan recorded 3.7% growth, says Aurangzeb
- By Web Desk -
- Jun 11, 2026
ISLAMABAD: Revealing Pakistan Economic Survey 2025-26, Finance Minister Muhammad Aurangzeb has said that country’s economy recorded a growth rate of 3.7 percent during the current fiscal year, demonstrating resilience despite a challenging domestic and international environment.
The finance minister said the government had been confident that economic growth would surpass the 4 percent mark. However, unforeseen regional and global developments prevented the economy from achieving the targeted growth rate.
Aurangzeb attributed part of the shortfall to the economic impact of regional tensions involving Iran, which affected overall economic activity and investor confidence. He also noted that heavy monsoon rains disrupted economic operations in several sectors, further impacting growth.
The finance minister pointed out that the global economy has slowed considerably, with world economic growth declining to 3.1 percent from 3.7 percent a year earlier. Against this backdrop, he said Pakistan’s economic performance reflected significant resilience.
Despite facing both internal and external challenges, Aurangzeb maintained that the country’s economy delivered an improved performance during the year. He added that the government had successfully managed multiple economic pressures and remained committed to maintaining stability while pursuing sustainable growth.
Per capita income, GDP
The survey indicates that per capita income has risen to $1,901, while average inflation is estimated at 6.7 percent, reflecting a significant decline from the high inflationary pressures witnessed in recent years.
The country’s primary surplus has reached 3.5 percent of GDP, while Federal Board of Revenue (FBR) tax collections increased to Rs11.229 trillion. Non-tax revenues were recorded at Rs4.633 trillion.
Despite signs of macroeconomic stability, external sector challenges persist. During the July-April period, the current account posted a deficit of $200 million compared to a surplus of $1.7 billion during the corresponding period last year. Exports declined by 5.4 percent to $25.8 billion, while imports rose by 8.5 percent to $52.8 billion, widening trade pressures.
Agriculture sector
The agriculture sector recorded provisional growth of 2.89 percent, falling short of the 4.5 percent target set for the fiscal year. Growth in major crops remained particularly weak at 0.65 percent against a target of 6.7 percent, while cotton ginning recorded marginal growth of just 0.07 percent compared to the targeted 7 percent. Livestock growth stood at 3.7 percent, forestry at 2 percent, and fisheries at 1.6 percent, all below their respective targets.
Among major crops, wheat production increased by 4.3 percent to 29.6 million tonnes, rice output rose by 2.8 percent to nearly 10 million tonnes, and sugarcane production grew by 6.2 percent to 89.45 million tonnes. However, maize production declined by 2.68 percent to 8.79 million tonnes, while cotton production fell by 0.5 percent to 7.05 million bales.
The survey also highlights notable gains in several minor crops. Chickpea production surged by 50.4 percent, potato production increased by 27.6 percent, and banana output rose by 30.8 percent. Mango production registered an increase of nearly 12 percent, while turmeric and chilli production recorded growth of 25 percent and more than 9 percent, respectively.
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Industrial sector
The industrial sector outperformed expectations, with overall growth reaching 6.6 percent against a target of 4.7 percent. The construction sector recorded growth of 5.7 percent, exceeding its target of 3.8 percent. The services sector also slightly surpassed expectations, expanding by 4.09 percent against a target of 4 percent. Information and communication services emerged as one of the strongest-performing sectors, recording growth of 7.5 percent.
However, some sectors failed to meet expectations. Wholesale and retail trade grew by 3.7 percent, transport by 2.3 percent, and hotels and restaurants by 3.9 percent. The financial and insurance sector recorded subdued growth of only 0.32 percent, while the real estate sector expanded by 3.6 percent. The electricity, gas and water supply sector witnessed a contraction of around 10 percent.
The survey further notes an increase in private-sector borrowing, with credit disbursements reaching Rs987 billion compared to Rs694 billion during the previous year. Agricultural lending also rose substantially to Rs2.458 trillion, reflecting increased financing activity in the sector.
Livestock sector
Updated livestock statistics show that Pakistan’s buffalo population has reached 49.1 million, while cattle numbers stand at 61.9 million. The country is home to 91.8 million goats and 33.5 million sheep, while the donkey population has increased to 6.16 million. The camel population stands at 1.19 million and horses number approximately 386,000.
Overall, the Pakistan Economic Survey presents a picture of gradual economic recovery supported by lower inflation, stronger industrial activity and improving fiscal indicators, although challenges remain in agriculture, exports and external sector performance.
Remittances
Finance Minister Muhammad Aurangzeb highlighted a significant increase in workers’ remittances during the current fiscal year, describing the inflows as an important source of support for Pakistan’s economy.
The minister said remittances surpassed $33 billion during the first ten months of the ongoing fiscal year, reflecting the continued confidence and contribution of overseas Pakistanis.
Aurangzeb noted that the Roshan Digital Account initiative was launched with the objective of encouraging investment from Pakistanis living abroad and strengthening their participation in the country’s economic development. He said the initiative continues to play an important role in attracting foreign exchange and facilitating investment opportunities.
Foreign reserves
Finance Minister Muhammad Aurangzeb said Pakistan’s external sector has shown significant improvement during the current fiscal year, supported by higher foreign exchange reserves, record remittance inflows, and growing IT exports.
The finance minister said foreign exchange reserves have increased to $17.2 billion, marking a 49 percent rise compared to the previous year. He noted that the improvement has strengthened Pakistan’s external position and enhanced its ability to meet international payment obligations.
Aurangzeb stated that the country’s import cover has improved to 2.75 months, reflecting greater stability in the external sector and improved foreign exchange liquidity.
IT sector
Highlighting the performance of the technology sector, Aurangzeb said IT exports reached $3.8 billion during the year. He added that Pakistani freelancers earned $959 million, demonstrating the growing importance of the digital economy and technology-driven services in generating foreign exchange earnings.The minister said the combined impact of stronger reserves, rising remittances, and increasing IT exports has contributed to greater economic stability and improved confidence in Pakistan’s external sector.