The federal government has released the Pakistan Economic Survey 2025-26, describing the country’s economy as a reflection of its journey from stability to growth. According to the economic survey, Pakistan’s economy achieved a growth rate of 3.7 percent during the fiscal year 2025-26, while the total size of the country’s economy crossed $452 billion for the first time.
Finance Minister Muhammad Aurangzeb, while presenting the survey, said that Pakistan maintained economic stability despite internal and external challenges, regional tensions, global trade uncertainties and climate impacts. According to the government, the results of the reform policies adopted during the last two years have now started to be visible in economic indicators.
According to the economic survey, per capita income reached $1,901, while a significant reduction in inflation helped improve the economic environment relatively. The government maintains that fiscal discipline, improved revenues and a strong external sector played an important role in restoring economic confidence.
Agriculture Sector: Growth Despite Challenges
The agriculture sector, the backbone of Pakistan’s economy, recorded a growth of 2.9 percent. Production of wheat, rice and sugarcane increased while the livestock sector also played a positive role. However, production of some crops, especially maize and cotton, remained below expectations, which is being attributed mainly to the effects of weather and increase in production costs.
Signs of recovery in the industrial sector
The industrial sector achieved a growth of 3.5 percent, while the large-scale manufacturing (LSM) recorded a growth of more than 6 percent. Improvement was seen in the production of cement, fertilizer, automobile and petroleum products, which is considered an indication of the revival of industrial activities.
Services sector as a driver of growth
According to the Economic Survey, the services sector continued to be the biggest driver of the country’s economy. The services sector contributed significantly to the overall economic growth due to improvements in trade, banking, communication, IT and logistics sectors.
External Sector and Remittances
Encouraging progress was also made in the external sector. The current account deficit remained limited while remittances touched record levels. According to the government, the confidence of Pakistanis abroad proved to be an important support for the country’s economy.
Fiscal discipline
The economic survey has described the fiscal performance as encouraging. The government has tried to contain the fiscal deficit through expenditure discipline, revenue increase and provincial surplus.
Future agenda
The government has prioritized exports, investment, industrial competitiveness, digital economy and human resource development in the next phase. According to economic experts, Pakistan needs to significantly increase exports, expand the tax net and improve productivity for sustainable development.
The Economic Survey 2025-26 indicates that Pakistan has made significant progress towards economic stability, however, continuous reforms and effective policy implementation will be essential for the next phase of development.
