Federal Finance Minister Muhammad Aurangzeb has released the Economic Survey for fiscal year 2025-26, highlighting that while the economy grew by 3.7%, several sectoral targets remained unmet. The survey reflects the country's financial performance amid internal and external challenges.
Key Economic Highlights
The Finance Minister noted that the government successfully managed multiple crises, including monsoon rains and global uncertainty from US tariffs. Despite these challenges, Pakistan's economy performed better than expected, with GDP growth reaching 3.7%. The economy has now surpassed $452 billion, and per capita annual income rose from $1,751 to $1,901. The current account recorded a surplus of $72 million from July to March.
Sectoral Performance
The agriculture sector grew by 2.89%, falling short of the 4.5% target. Crop growth was 2.4% (target 3.5%), livestock 3.7% (target 4.2%), forestry 2% (target 3.5%), and fisheries 1.6% (target 3%). Industrial growth reached 3.5% against a 4.3% target, with large-scale manufacturing exceeding expectations at 6.1% growth (target 3.5%). The services sector grew by 4.09%, slightly above the 4% target.
Inflation and Fiscal Discipline
Inflation continued to decline, averaging 6.7%. The budget deficit was significantly reduced, and FBR revenues increased by 10.1%. Remittances surpassed $33 billion in the first ten months, and foreign exchange reserves crossed $17 billion, expected to reach $18 billion by June end.
Other Notable Achievements
The number of registered companies reached 300,000, with 39,000 new registrations. Freelancer contributions approached $1 billion. The fiscal deficit narrowed to 0.7% of GDP. The current account deficit shrank to $252 million, and Roshan Digital Account investments reached $12.7 billion. A Panda Bond was successfully launched, and tax revenues increased by 11.3%.
Detailed Sectoral Data
The survey provided detailed data on various sectors. Major crops posted 0.65% growth, with wheat production up 4.3% to 29.65 million tons, rice up 2.8% to 9.998 million tons, and sugarcane up 6.2% to 89.45 million tons. Maize production declined 2.68% to 8.794 million tons, and cotton fell 0.5% to 7.052 million bales. Chickpea production surged 50.4%, potato 27.6%, and banana 30.8%.
Livestock expanded by 3.75%, with buffalo population at 49.1 million, cattle 61.9 million, sheep 33.5 million, and goats 91.8 million. The camel population stood at 1.193 million, horses 386,000, and donkeys 6.16 million.
The Finance Minister reiterated the government's commitment to economic reforms, fiscal discipline, and sustainable growth to strengthen Pakistan's economy.
