Pakistan's literacy rate increased to 63 percent during fiscal year 2025-26, while the country's economy expanded to $452.1 billion despite facing multiple domestic and external challenges, Finance Minister Muhammad Aurangzeb said while presenting the Economic Survey 2025-26.
The finance minister acknowledged that growth targets in the agriculture and industrial sectors were not fully achieved during the fiscal year. He noted that Pakistan entered the year amid uncertainty caused by international tariff developments, but later strengthened its export competitiveness, particularly in the United States market.
Challenges and Resilience
Aurangzeb highlighted that severe floods in August and September 2025, followed by a regional conflict in March 2026, posed significant challenges to the economy. However, he said the country successfully navigated these difficulties and continued its transition from economic stabilisation toward growth.
Commenting on tensions in the Middle East, the minister said Pakistan's economic performance remained steady despite the regional crisis, adding that GDP growth could have surpassed 4 percent under more favourable circumstances.
Key Economic Indicators
According to the survey, per capita income increased from $1,751 to $1,901 during the fiscal year. Several industries recorded strong performance, with cement production rising 10 percent, fertiliser output increasing 17 percent, and petroleum sector growth reaching 5 percent.
The minister also reported a current account surplus of $72 million during the July-March period. Manufacturing activity showed signs of recovery, with 16 of 22 industrial sectors posting positive growth, including food and textile industries.
Sectoral Performance
Meanwhile, the services sector expanded by 4.9 percent, supported by growing consumer demand and continued progress in the digital economy. The government remains focused on sustaining the growth momentum while addressing structural challenges.
