ISLAMABAD:

In a precipitous display of macroeconomic resilience, Pakistan’s economy concluded fiscal year 2025-26 with a robust real GDP growth rate of 3.7 percent, representing the most monumental expansion in four years. According to the Finance Ministry’s latest Economic Update and Outlook for June 2026, the national economy has successfully expanded to a valuation of $452.1 billion.

Broad-Based Sectoral Recovery

Despite early-year disruptive flood-related challenges and subsequent volatility in global commodity markets, the nation preserved its stabilization gains. Growth remained pervasive across agriculture, industry, and services. Notably, large-scale manufacturing witnessed a surge of 6.4 percent during July-April FY2026, a stark reversal from the 1.5 percent contraction recorded in the corresponding period of the previous year.

"Stabilisation gains were preserved, growth remained broad-based across agriculture, industry and services, and average inflation stayed in single digits within the target range," the Finance Ministry report affirmed, highlighting a primary surplus of 3.5 percent of GDP.

Furthermore, the agriculture sector registered a commendable 2.9 percent growth, with future projections targeting a 3.6 percent expansion in FY2027, bolstered by anticipated gains in livestock, fisheries, and cotton ginning. Concurrently, the Consumer Price Index (CPI) inflation averaged 6.7 percent during July-May FY2026, remaining within the government’s entrenched target parameters.

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