Pakistan’s economy grew by 3.7 per cent in fiscal year 2025-26, falling short of the government’s 4.2pc target set in last year’s budget, according to the Economic Survey 2025-26 unveiled by Finance Minister Muhammad Aurangzeb on Thursday.
Presenting the survey in Islamabad, Aurangzeb said the economy faced major challenges at the start of the fiscal year, including uncertainty caused by monsoon rains and global economic disruptions stemming from the imposition of tariffs by the United States on several countries.
Despite these challenges, he said the government successfully navigated multiple crises and maintained economic stability. “The economy performed well despite internal and external pressures,” the minister said, adding that growth was expected to exceed 4pc but was affected by developments in the Middle East.
Aurangzeb said that Pakistan’s economy expanded to more than $452 billion, while per capita annual income increased from $1,751 to $1,901 during the fiscal year.
He said the petroleum sector recorded 5pc growth, while the current account posted a surplus of $72 million during July-March. The agriculture sector grew by 2.89pc, with dairy and livestock accounting for nearly 60pc of agricultural output.
The minister highlighted strong export performance, saying sports goods exports had surpassed $3 billion and information technology exports were expected to reach $4.5 billion. He also noted that footballs manufactured in Pakistan would be used at the FIFA World Cup.
Aurangzeb said reducing imports remained a key priority for the government. He added that foreign exchange reserves currently stood at $17.1 billion and were expected to reach $18 billion by the end of June.
The finance minister maintained that Pakistan’s economic performance remained resilient despite global uncertainty and regional geopolitical tensions.
