Executive Summary: Pakistan Economic Survey 2025-26

The fiscal year 2025-26 marks a period of robust structural turnaround and macroeconomic stabilization for Pakistan 1, 2. Driven by strategic reforms, the economy has shown resilience across key sectors, marked by significant fiscal consolidation, growing foreign exchange reserves, and a thriving digital economy.

Economic Growth and Sectoral Expansion

• Real GDP Growth: The economy witnessed a consolidated real GDP growth of 3.70% (up from 2.68% last year), taking the total GDP at current market prices to Rs 126.9 Trillion and per capita income to $1,901 2, 3.
• Sectoral Performance: The expansion was largely led by the Services sector, which grew by 4.09% 1, 2. The Industrial sector posted a 3.51% expansion, heavily supported by a stellar 6.6% growth in general manufacturing and a 6.1% recovery in Large-Scale Manufacturing (LSM) 4, 5. The Agriculture sector grew by 2.89%, anchored by stable livestock dominance and resilient major crop yields, including wheat, sugarcane, and rice 6, 7.

Fiscal Consolidation and Debt Management

• Deficit Reduction: Aggressive fiscal control and revenue mobilization dramatically narrowed the fiscal deficit to just 0.7% of GDP (Rs 856.4 Billion), down from 2.6% in the preceding period 1, 8. The government also achieved a primary surplus of 3.2% of GDP 8.
• Revenue & Debt: FBR tax collections surged by 10.1% to Rs 9,305.9 Billion 8. Total public debt stood at Rs 83,285 Billion 9. Notably, the government successfully executed Rs 2.1 Trillion in debt buybacks, effectively reducing debt servicing costs 10.

External Sector and Monetary Stability

• Reserves & Currency: Pakistan achieved an all-time high in gross foreign exchange reserves, reaching $22.6 Billion 2, 9. The external sector demonstrated strength by posting a current account surplus of $72 Million, while the exchange rate remained structurally stable at an average of PKR 281.1 per USD 1, 9.
• Inflation Trends: Prudent monetary policies helped moderate average CPI inflation to 6.2% (down from 26% in FY24), although international crude oil prices caused a temporary peak of 10.9% in April 2026 3, 6, 9.

Digital Economy and Climate Resilience

• IT & Telecom Surge: The Information Communication Technology (ICT) sector proved to be a major growth engine, achieving a trade surplus of $2.9 Billion 7. ICT exports surged by 19.7% to nearly $3.39 Billion, and freelancer remittances rocketed by 51% 3, 7, 11. Furthermore, the successful 5G auction generated $509.6 Million in direct exchequer revenues 11.
• Climate Action: Addressing vulnerabilities from extreme climate events, Pakistan met four landmark targets under the IMF’s Resilience and Sustainability Facility (RSF), including a new carbon levy and green taxonomy 11, 12. Active implementation also began for the $500 Million Climate and Disaster Resilience Enhancement Programme (CDREP) 3, 13.

Disclaimer: This summary is based on official publications of the Government of Pakistan, Finance Division. While reasonable care has been taken in its preparation, it is advised to refer to the original official sources for verification 13, 14.