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ISLAMABAD, Aug 12 (APP):Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Tuesday said that Pakistan has achieved significant economic milestones, marking a robust turnaround in the macroeconomic framework – a foundation for long-term growth.
Launching the Monthly Economic Development Update for July 2025, he said that key indicators, including GDP growth, inflation control, and fiscal discipline showed that Pakistan was on a path to economic recovery and stability.
“We have achieved macroeconomic stability. Inflation has dropped, exports are up, and development spending has reached historic levels,” he said during a media briefing.
The minister stated that exports in July FY2026 rose by 17 percent year-on-year, reaching $2.7 billion compared to $2.3 billion in July FY2025 – reflecting resilience in the external sector. Meanwhile, the current account balance swung from a $2.1 billion deficit to a $2.1 billion surplus, a net gain of $4.2 billion in one year.
On the fiscal side, he said Pakistan posted a primary balance of 2.4 percent of GDP – the highest in 24 years—and reduced the fiscal deficit to 5.4 percent of GDP, down from 6.9 percent last year.
“This is the lowest fiscal deficit in eight years, achieved through better expenditure management and revenue collection,” Ahsan Iqbal added.
The minister said public development spending surpassed Rs 1 trillion for the first time in Pakistan’s history, with Rs 1.068 trillion spent under the PSDP—98 percent of the target.
He highlighted a major drop in inflation, with CPI falling to 4.1 percent in July 2026, down from 11.1 percent the previous year. The Pakistan Stock Exchange crossed the 141,000-point mark, an all-time high reflecting investors’ confidence in the country’s economic outlook.
He said international credit agencies including Fitch, Moody’s, and S&P have upgraded Pakistan’s credit ratings, signaling improved global confidence.
Similarly, Barron’s, a leading financial publication, described Pakistan’s recovery as a “macroeconomic miracle”. It noted the country’s remarkable transition from near-default in 2023 to a stable and investable economy in less than two years. These endorsements reflect growing confidence in Pakistan’s capacity to navigate external shocks, reinforce macroeconomic buffers, and sustain a path toward inclusive and sustainable growth
Pakistan, he said, launched its fourth Earth Observation Satellite, which will aid in agriculture monitoring, urban planning, and disaster management.
He also noted that the government has recently completed a digitized 7th Agricultural Census, consolidating data on crops, livestock, and farm machinery for the first time, which would help revise national growth figures upward.
According to the report, the remittances have shown remarkable growth in July 2026, rising by 7.4% ($3.2 billion) as compared to $3.0 billion in the corresponding month last year, indicating overseas Pakistani’s growing confidence in the government’s economic management and overall stability.
These developments not only stabilized the exchange rate but also contributed to a notable buildup foreign exchange reserves, now reaching $20 billion.