Finance Minister presents economic survey; several economic targets remain unmet, economic growth recorded at 3.7%

Islamabad: Federal Finance Minister Muhammad Aurangzeb has released the Economic Survey based on the country's financial performance for the entire fiscal year, revealing that several economic targets could not be achieved across various sectors.

Presenting the Economic Survey, the Finance Minister said that the report reflects the performance of the economy throughout the fiscal year. He noted that the country faced uncertainty during the initial months of the fiscal year due to monsoon rains, while the imposition of tariffs by the United States on various countries also created global economic uncertainty.

He stated that the government successfully managed multiple crises and that despite internal and external challenges, Pakistan’s economy performed better than expected. The economy recorded a growth rate of 3.7 percent, although the government had anticipated growth exceeding 4 percent during the fiscal year.

The Finance Minister added that had the Middle East situation not arisen, GDP growth would have surpassed 4 percent. Pakistan’s economy has now exceeded $452 billion, while per capita annual income increased from $1,751 to $1,901. He said that global uncertainty also affected international economies, but Pakistan’s economic performance remained encouraging despite the Middle East crisis.

He further noted that the petroleum sector recorded 5 percent growth, while the current account remained in surplus by $72 million from July to March. The agriculture sector grew by 2.89 percent, with dairy and livestock contributing around 60 percent of the agricultural economy.

According to the minister, large-scale manufacturing recorded 6.1 percent growth, while 16 sectors, including food and textiles, showed positive performance. Cement demand increased by 10 percent, fertilizer demand rose by 17 percent, and the services sector registered 4.9 percent growth.

He said that fiscal discipline led to a significant reduction in the budget deficit, while FBR revenues increased by 10.1 percent. Inflation continued to decline over the last two years, with the average inflation rate recorded at 6.7 percent. Remittances also increased significantly, surpassing $33 billion during the first ten months of the fiscal year. He expressed gratitude to overseas Pakistanis for their contributions.

The minister emphasized that remittances play a vital role in meeting external payment obligations. He said the purpose of the Roshan Digital Account initiative is to encourage investment. Overall exports declined due to lower rice and sugar exports, although the textile sector continued to play a key role in export earnings.

Muhammad Aurangzeb stated that footballs manufactured in Pakistan will be used in the FIFA World Cup, while sports exports have exceeded $3 billion. Foreign exchange reserves have crossed $17 billion and are expected to reach $18 billion by the end of June.

He added that the number of registered companies has reached 300,000, with 39,000 new companies registered during the year. The contribution of freelancers is approaching $1 billion, while 16 out of 22 manufacturing sectors showed improvement. The fiscal deficit has been reduced to just 0.7 percent of GDP.

The Finance Minister further said that the current account deficit narrowed to $252 million, investment through Roshan Digital Accounts reached $12.7 billion, a Panda Bond was successfully launched, and tax revenues increased by 11.3 percent. He noted that the Prime Minister is focused on boosting exports.

He reiterated the government's commitment to continuing economic reforms, maintaining fiscal discipline, promoting investment, and achieving sustainable growth to strengthen the foundations of Pakistan’s economy.

Economic Survey Report

According to the Economic Survey, the agriculture sector recorded growth of 2.8 percent against a target of 4.5 percent. Crop growth stood at 2.4 percent against a target of 3.5 percent, while livestock growth reached 3.7 percent compared to the target of 4.2 percent.

Similarly, forestry growth was recorded at 2 percent against a target of 3.5 percent, while fisheries grew by 1.6 percent against a target of 3 percent. Industrial growth reached 3.5 percent, falling short of the 4.3 percent target.

Mining and quarrying recorded growth of only 0.38 percent against a target of 3 percent. Manufacturing, however, exceeded expectations with growth of 6.6 percent compared to the target of 4.7 percent. Large-scale manufacturing also outperformed its target, growing by 6.1 percent against a target of 3.5 percent.

The survey reported that small-scale industries achieved 8.5 percent growth against a target of 8.9 percent. Growth in electricity, gas, and water supply was targeted at 3.5 percent, but the sector recorded negative growth, with an overall decline of 10 percent.

The construction sector grew by 5.7 percent against a target of 3.8 percent, while the services sector recorded 4.09 percent growth, slightly above the target of 4 percent. Wholesale and retail trade grew by 3.7 percent against a target of 3.9 percent.

Transport sector growth stood at 2.3 percent against a target of 3.4 percent. Hotels and food services recorded growth of 3.9 percent compared to a target of 4.1 percent. The information and communication sector exceeded expectations with growth of 7.5 percent against a target of 5 percent.

The survey further stated that the insurance and financial sector recorded growth of only 0.32 percent against a target of 5 percent, while real estate growth stood at 3.6 percent compared to a target of 4.2 percent. The education sector achieved 5.2 percent growth, surpassing the target of 4.5 percent.

The social services sector recorded 6.8 percent growth against a target of 4 percent. Private sector growth reached 3.6 percent, below the target of 4.5 percent. Major crops posted growth of 0.65 percent, compared to the negative growth projection of 4.5 percent.

Wheat production increased by 4.3 percent to 29.65 million tons, while rice production rose by 2.8 percent to 9.998 million tons. Sugarcane production increased by 6.2 percent, reaching 89.45 million tons.

Maize production declined by 2.68 percent to 8.794 million tons, while cotton production fell by 0.5 percent to 7.052 million bales. Chickpea production recorded an impressive growth of 50.4 percent.

Potato production increased by 27.6 percent, while banana production rose by 30.8 percent. Mango, turmeric, and chili production increased by 11.6 percent, 25.1 percent, and 9.2 percent, respectively. The livestock sector expanded by 3.75 percent, supported by a 3.46 percent increase in production.

Maize production stood at 8.8 million tons, while potato production reached 389,000 tons. Vegetable production increased by 12.6 percent to 403,000 tons, while fruit production grew by 2.8 percent to 444,000 tons. Livestock increased by 3.8 percent during fiscal year 2025-26.

According to the survey, Pakistan's buffalo population reached 49.1 million, while cattle numbers stood at 61.9 million. Sheep numbered 33.5 million, while goats reached 91.8 million.

The Economic Survey further revealed that the camel population stands at 1.193 million, horses number 386,000, and the donkey population reached 6.16 million during the current fiscal year.

The report concludes that several economic targets remained unmet across different sectors, despite improvements in a number of key economic indicators.