The new monthly economic outlook report released by the Ministry of Finance has presented encouraging economic indicators. Officials say that the economy is moving forward on the journey of recovery, and economic activities are stabilising. The report described the staff-level agreement with the IMF as a result of global confidence in the country’s economic policies.
The agricultural economy was estimated to have suffered a loss of Rs 430 billion due to the floods, but industrial production filled the gap to some extent. The large-scale manufacturing sector grew by 4.4 percent in the first two months of the current fiscal year.
The automobile, cement and construction sectors supported economic activity, with cement consumption increasing by 15 percent and exports by 21 percent.
According to the report, annual inflation was 5.6 percent in September 2025. The floods certainly had an impact on food prices, but inflation is expected to remain between 5 and 6 percent in the coming months.
Positive news also emerged on the tax revenue front. FBR collections recorded a 12.5 percent improvement, while total federal revenue increased by 231 percent from July to August, turning the fiscal deficit into a surplus and benefiting the country by Rs 1,509 billion.
The current account deficit was $594 million in July-September, but the situation improved in September, and a surplus of $110 million was recorded. During the same period, exports were $7.9 billion and imports were $15.4 billion.
Remittances also improved further and increased by 8.4 percent to $9.5 billion. Foreign exchange reserves have reached $19.9 billion. However, foreign investment fell by 34 percent to $569 million.
According to the report, the policy rate in the financial sector is stable at 11 percent. In terms of employment opportunities abroad, more than 73,000 Pakistanis got jobs in September. Ehsaas and BISP programmes also continued their role in public welfare, where billions of rupees were distributed in the form of financial assistance.
