The federal government is set to release the National Economic Survey for the fiscal year 2025-26 on 11 June (Thursday), which will be presented by Federal Minister for Finance Muhammad Aurangzeb, it was reported on Wednesday.
According to the survey findings, Pakistan’s agriculture sector recorded mixed performance, with increases in the production of wheat, rice, sugarcane, gram, potatoes, mangoes, pulses, vegetables and fruits. However, production of maize and cotton witnessed a decline during the fiscal year.
Large-scale manufacturing grew by 6.1 percent, reflecting positive momentum in the industrial sector. Despite this, the country’s overall economic targets were not fully achieved, particularly in agriculture and industry, although the services sector performed better than expected.
The economic growth rate stood at 3.7 percent, compared with the target of 4.2 percent, though it was higher than the previous year’s 3.2 percent. Officials noted that growth was achieved despite challenges such as floods and regional instability.
External sector indicators showed a widening trade deficit, which increased by 20.8 percent to nearly $32 billion during the first ten months of the fiscal year. Imports rose by 6.94 percent to over $57 billion, while exports declined by 6.25 per cent to $25.21 billion.
However, remittances provided some relief, rising by 8.5 percent to $34 billion during the same period.
On the labour front, 1.8 million new jobs were created, with the services sector contributing 1.1 million positions, followed by agriculture and industry.
Inflation stood at 7.1 percent, slightly below the target of 7.5 percent. Investment indicators, however, fell short of expectations, with total investment recorded at 14.4 percent against a target of 14.7 per cent.
Fiscal indicators showed mixed trends. National savings stood at 14.1 percent, slightly below target, while the budget deficit for the first nine months was recorded at 0.7 percent of GDP. The primary surplus increased significantly to Rs4,091 billion.
Public finances showed improvement in revenue collection. Total revenues rose by 10.7 percent to Rs14,799 billion, while tax revenue increased by 11.3 percent. FBR tax collection rose by 10.1 percent to Rs9,306 billion.
On the expenditure side, total spending declined by 4.2 percent to Rs15,656 billion during the first nine months of the fiscal year.
Pakistan’s foreign exchange reserves increased significantly during the year, rising from $14.8 billion in early May to $21.3 billion. The rupee also remained relatively stable against the US dollar, with the average exchange rate recorded at Rs280.94.
The country’s economy expanded to $452 billion, while percapita income rose from $1,824 to $1,901.
IT exports reached a record high of $3.8 billion, marking a 21 percent increase, reflecting strong growth in the technology sector.
During the fiscal year, Pakistan returned to international capital markets after four years and issued a Panda Bond in China for the first time, along with a Eurobond in global markets.
The country also repaid a $3 billion deposit to the United Arab Emirates and cleared a 30-year-old $450 million loan. Saudi Arabia provided an additional $3 billion financial facility to Pakistan.
