ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb presented the Economic Survey of Pakistan 2025-26 in Islamabad on Thursday.
Addressing a press briefing alongside other federal ministers, the finance minister acknowledged that the agriculture and industrial growth targets were not achieved during the outgoing fiscal year.
He said the country began the outgoing fiscal year with uncertainty due to tariffs. “Then, by the end of July, we reached a point where we could be in a competitive position with respect to our exports, especially to the US,” he added.
Then there were floods in August and September 2025, followed by a regional conflict in March this year.
“These challenges tested Pakistan’s resilience,” he said, adding that the government was able to deal with them and remained on the path of moving from stabilisation to growth.
Referring to developments in the Middle East, the finance minister said Pakistan’s economic performance remained resilient despite the regional crisis, adding that GDP growth could have exceeded 4% if the situation had not emerged.
He said the size of Pakistan’s economy had crossed $452 billion, reaching $452.1 billion during the fiscal year, while per capita income rose from $1,751 to $1,901.
Providing sector-wise performance, Aurangzeb noted that the cement sector grew by 10%, fertiliser by 17%, and petroleum by 5%. He added that Pakistan’s current account remained in surplus at $72 million during the July–March period.
He said positive growth trends were recorded across 16 sectors, including food and textiles, with 16 out of 22 manufacturing sectors showing improvement during the fiscal year. Demand for goods increased notably, supported by the digital economy, while the services sector posted 4.9% growth.
On the fiscal side, the minister said improved fiscal discipline helped maintain a surplus position, with the fiscal deficit contained at 0.7% and the primary balance remaining in surplus. The primary surplus stood at 3.2% of GDP during July–March.
Aurangzeb said inflation had eased significantly from previous highs, averaging 6.7% during July–May. He added that Federal Board of Revenue (FBR) revenues rose by 10.1%, while remittances also recorded strong growth.
He said foreign exchange reserves stood at around $17.1 billion, expected to reach $18 billion by the end of June, while as of May 29, 2026, reserves had reached $17.2 billion, reflecting a 49% year-on-year increase. He added that Pakistan’s import cover stood at 2.75 months.
Highlighting external sector performance, Aurangzeb said overseas Pakistanis sent a record $33.9 billion in remittances during July–May, with inflows hitting a monthly high of $4.3 billion in April 2026. He appreciated the contribution of overseas Pakistanis, noting that remittances play a vital role in global economies.
He added that IT and technology-related exports reached $3.8 billion during July–April, while freelancers contributed $959 million, nearing the $1 billion mark. Deposits under the Roshan Digital Account initiative reached a record $12.7 billion.
Aurangzeb further said the Pakistan Stock Exchange investor base had exceeded 563,000, with a record 11 new companies listed this year. He noted that over 39,000 companies had been registered, bringing the total to more than 297,000.
According to him, private sector credit increased by Rs 934 billion during July–March, while agricultural financing reached Rs 2.162 trillion.
He said the Benazir Income Support Programme (BISP) allocation had been raised to Rs 722.5 billion to support low-income households. He added that privatisation efforts were being accelerated for entities including PIA, First Women Bank Limited (FWBL), and power distribution companies (DISCOs).
The minister also said a rightsizing initiative was underway, involving ministry mergers and the closure of several departments, including the Pakistan Public Works Department (PWD).
Economic Survey Report
According to the document, the agriculture sector recorded a growth rate of 2.8% against a target of 4.5%. The growth target for crops was 3.5%, while actual growth stood at 2.4%. The livestock sector achieved a growth rate of 3.7% against a target of 4.2%.
The Economic Survey states that the forestry sector had a growth target of 3.5% but recorded growth of only 2%. The fisheries sector was targeted to grow by 3%, but its growth rate remained at 1.6%. The industrial sector recorded growth of 3.5% compared to the target of 4.3%.
The mining and quarrying sector had a growth target of 3%, but its actual growth was only 0.38%. The manufacturing sector exceeded expectations, achieving 6.6% growth against a target of 4.7%. Large-scale manufacturing grew by 6.1%, surpassing its target of 3.5%.
According to the document, small-scale manufacturing recorded growth of 8.5% against a target of 8.9%. The electricity, gas, and water supply sector was expected to grow by 3.5%, but instead recorded negative growth, declining by 10%.
The construction sector achieved growth of 5.7% against a target of 3.8%. The services sector recorded growth of 4.09%, slightly exceeding the target of 4%. The wholesale and retail trade sector posted growth of 3.7% compared to a target of 3.9%.
The transport sector recorded growth of 2.3% against a target of 3.4%. The hotels and food services sector grew by 3.9%, slightly below the target of 4.1%. Information and communication services outperformed expectations, registering growth of 7.5% against a target of 5%.
According to the Economic Survey, the insurance and financial sector was targeted to grow by 5%, but managed growth of only 0.32%. The real estate sector recorded growth of 3.6% against a target of 4.2%. The education sector achieved growth of 5.2%, exceeding its target of 4.5%.
The document further states that the social services sector recorded growth of 6.8%, surpassing the target of 4%. Private sector growth was 3.6% against a target of 4.5%. Major crops recorded growth of 0.65%, compared to a projected decline of 4.5%.
Wheat production increased by 4.3% to reach 29.605 million tonnes. Rice production rose by 2.8% to 9.998 million tonnes, while sugarcane production increased by 6.2% to 89.45 million tonnes.
According to the Economic Survey, maize production declined by 2.68% to 8.794 million tonnes, while cotton production fell by 0.5% to 7.052 million bales. Chickpea production recorded an exceptional growth of 50.4%.
The document states that potato production increased by 27.6%, while banana production rose by 30.8%. Production of mangoes, turmeric, and chilies increased by 11.6%, 25.1%, and 9.2%, respectively. The livestock sector expanded by 3.75%, supported by a 3.46% increase in production.
Maize production stood at 8.8 million tonnes, while potato production reached 389,000 tonnes. Vegetable production increased by 12.6% to 403,000 tonnes, and fruit production rose by 2.8% to 444,000 tonnes. Livestock grew by 3.8% during fiscal year 2025-26.
According to the document, the country’s buffalo population reached 49.1 million, while cattle numbered 61.9 million. The population of sheep and rams stood at 33.5 million, while goats numbered 91.8 million.
The Economic Survey further notes that the camel population reached 1.193 million, horse numbers stood at 386,000, and the donkey population was recorded at 6.16 million during the current fiscal year.
