ISLAMABAD, Aug 22 (APP):Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Saturday said Pakistan’s economy had entered a phase of greater stability, with exports, industrial activity and remittances showing encouraging growth. However, he stressed that the next priority was to translate macroeconomic stability into sustainable economic transformation under URAAN Pakistan initiative. Presenting the Monthly Development Update for August, the minister said the government was committed to …
Exports, industry, remittances show strong growth as economy moves towards transformation: Ahsan
ISLAMABAD, Aug 22 (APP):Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Saturday said Pakistan’s economy had entered a phase of greater stability, with exports, industrial activity and remittances showing encouraging growth.
However, he stressed that the next priority was to translate macroeconomic stability into sustainable economic transformation under URAAN Pakistan initiative.
Presenting the Monthly Development Update for August, the minister said the government was committed to regularly presenting a clear and transparent picture of the country’s economic position, progress achieved and challenges requiring continued attention.
He said Pakistan had passed through a difficult period of economic adjustment and the stability achieved over the past few years had been hard-earned.
“Through URAAN Pakistan, our focus is now to translate this stability into sustainable economic transformation, with exports as a key driver, leading to more jobs, better incomes, greater opportunities for our youth and an improved quality of life for the people of Pakistan,” he said.
Ahsan said the beginning of FY2026-27 had provided encouraging economic signals, with Consumer Price Index (CPI) inflation easing to 9.2 per cent in July 2026 from 11.7 per cent in May 2026.
He said the government was continuously monitoring markets and prices through regular meetings of the National Price Monitoring Committee (NPMC), with particular focus on strengthening supply chains, monitoring the quality of essential commodities and taking timely administrative measures to keep essential items affordable.
Workers’ remittances remained a major source of external-sector resilience, reaching US$3.6 billion in July 2026, up 13 per cent from US$3.2 billion in July 2025.
The strong start to FY2026-27 followed record remittances of US$41.6 billion during the previous fiscal year, with the inflows strengthening the country’s foreign exchange position while directly supporting millions of Pakistani households.
Industrial activity also showed a significant recovery, with Large-Scale Manufacturing (LSM) recording average growth of 5.0 per cent in FY2025-26 against a contraction of 0.7 per cent in the previous year.
The recovery was broad-based, with 16 out of 22 sectors posting positive growth. Automobiles recorded the highest growth of 57.8 per cent, followed by transport equipment 42.4 per cent, electrical equipment 14.3 per cent, tobacco 12.6 per cent and food 7.0 per cent.
The external sector also started FY2026-27 on an encouraging note as goods exports increased by 9.4 per cent to US$3.0 billion in July 2026 from US$2.8 billion a year earlier.
Total exports of goods and services rose by 13 per cent to US$3.9 billion from US$3.5 billion during the same month of the previous year. Growth was supported by surgical goods, up 16.3 per cent, food 8.0 per cent, leather goods 7.8 per cent and textiles 3.9 per cent.
Information and Communication Technology (ICT) exports rose to US$417 million in July 2026, highlighting the growing potential of technology and digital services as an important source of export earnings.
Imports of goods and services, meanwhile, increased by 13 per cent to US$7.3 billion in July 2026 from US$6.5 billion in July 2025, reflecting strengthening domestic economic activity and higher demand for productive and capital goods.
Despite higher imports, the current account deficit remained contained at US$328 million in July 2026 against US$529 million in July 2025, demonstrating resilience in the country’s external position amid global uncertainties.
On the fiscal side, Federal Board of Revenue (FBR) tax collection increased by 8.4 per cent to Rs820.9 billion in July FY2026-27 from Rs757.4 billion in the corresponding month of the previous year.
Ahsan said stronger fiscal discipline had also improved the overall fiscal position, with the fiscal deficit narrowing to 2.6 per cent of GDP in FY2025-26 from 5.4 per cent in FY2024-25, marking the lowest level in two decades.
On development, he said the government was pursuing a more focused and strategic approach to public investment, with resources being directed towards high-impact projects aligned with URAAN Pakistan priorities.
Under the Finance Division’s release strategy, the Ministry of Planning authorized Rs211.327 billion, or 21.1 per cent, during July 2026 for timely financing of priority development projects.
The minister said the underlying principle was clear: every rupee of public development spending must deliver maximum value for money.
He said the Central Development Working Party (CDWP) continued to improve the quality and prioritization of public investment decisions. During July FY2026-27, it considered 27 agenda items, comprising 22 projects, four position papers and one concept clearance proposal.
Of these, nine projects, three position papers and one concept clearance proposal were approved, while nine projects were recommended to the Executive Committee of the National Economic Council (ECNEC).
Three projects were deferred, while one project and one position paper were returned to their respective sponsors for further consideration.
Projects approved during July are expected to generate around 7,851 direct and 14,053 indirect jobs across key sectors, reinforcing the government’s focus on employment-oriented and inclusive development.
A comprehensive review of CDWP projects also resulted in the streamlining of non-essential components, generating savings of Rs1.02 billion during July and enabling scarce public resources to be redirected towards higher-impact priorities.
During the month, five PSDP projects were monitored and two projects evaluated to assess implementation progress, efficiency, impact and sustainability.
The minister said human capital development remained central to Pakistan’s long-term economic transformation. On World Population Day, July 11, the government reaffirmed its commitment to addressing the population challenge through greater investment in health, education, skills and women’s empowerment.
With Pakistan’s population standing at 254.6 million, he said strengthening human capital was essential to harnessing the demographic dividend and achieving inclusive and sustained growth under URAAN Pakistan.
On July 28, the 68th meeting of the National Logistics Board reviewed the operational performance and financial matters of the National Logistics Corporation as well as regional connectivity initiatives, with focus on expanding transit trade hubs, upgrading border and logistics infrastructure and reducing trade costs.
On July 29, the Ministry of Planning launched the 50th issue of Development Advocate Pakistan, titled “A Nation at a Turning Point”. With 67 per cent of Pakistan’s population below the age of 30, the publication emphasized policy continuity, evidence-based planning and investment in human capital, including the initiative to train one million youth as “Ambassadors of Social Change” under URAAN Pakistan.
Ahsan said economic indicators at the beginning of FY2026-27 offered encouraging signs, but sustained progress would require continued fiscal discipline, stronger exports, productive investment, human capital development and institutional reforms.
He reiterated that the government remained committed to converting economic stability into a durable foundation for inclusive growth, employment creation and improved living standards for the common man.
