PESHAWAR, Jun 12 (APP):Pakistan's economy achieved a growth rate of 3.7 percent and reached a record size of $452 billion during fiscal year 2025–26 despite facing severe challenges, including floods and regional instability in the Middle East. “The federal government deserves full credit and appreciation for achieving substantial economic growth in FY 2025–26 despite numerous internal and external challenges,” said Professor Dr. Zilakat Malik, former Chairman of the Economics Department …
Despite challenges, Pakistan’s economy achieves strong growth in FY 2025–26: Experts
PESHAWAR, Jun 12 (APP):Pakistan’s economy achieved a growth rate of 3.7 percent and reached a record size of $452 billion during fiscal year 2025–26 despite facing severe challenges, including floods and regional instability in the Middle East.
“The federal government deserves full credit and appreciation for achieving substantial economic growth in FY 2025–26 despite numerous internal and external challenges,” said Professor Dr. Zilakat Malik, former Chairman of the Economics Department at the University of Peshawar, while speaking to APP on Friday.
Referring to the findings of the Pakistan Economic Survey 2025–26, he said the country’s economic performance remained encouraging, with improvements recorded across 25 key economic indicators.
Dr. Malik said that Pakistan achieved a GDP growth rate of 3.7 percent, the highest in the last four years.
He pointed out that GDP growth stood at -0.2 percent in FY 2023, 2.6 percent in FY 2024, and 3.2 percent in FY 2025.
He said the economy performed well despite significant domestic and international challenges in current fiscal year. The fiscal year began amid uncertainty caused by increased tariffs imposed by the United States, monsoon floods during August and September, and regional tensions that emerged in March this year.
“These challenges tested Pakistan’s economic resilience, but the government successfully managed them and kept the economy on the path from stabilization towards growth,” he added.
Dr. Zilakat Malik described the expansion of Pakistan’s economy to $452.1 billion, the increase in per capita income from $1,751 to $1,901, and the stability of the exchange rate at Rs280.65 per US dollar, compared to Rs279.35 in FY25, as positive indicators.
He further highlighted that Large-Scale Manufacturing (LSM) registered growth of 6.1 percent, cement demand increased by 10 percent, the services sector expanded by 4.9 percent, and information and communication services grew by 7.5 percent, reflecting strong economic performance.
Assistant Professor Sundas Amin appreciated the 10 percent increase in tax collection by the Federal Board of Revenue (FBR) during the period under review. She also highlighted the current account surplus of $72 million, supported by strong remittance inflows.
According to her, remittances reached $33.9 billion during July–March FY2025–26, while inflows in April alone touched a record $4.3 billion, the highest ever recorded in a single month.
She also welcomed the increase in exports, particularly textiles and sports goods during current fiscal year. Referring to footballs manufactured in Pakistan for the ongoing FIFA World Cup, she said that sports goods exports recorded growth of 18 percent, while IT exports surpassed $3.8 billion and are expected to reach $4.5 billion in the next fiscal year.
The experts also appreciated the federal government efforts regarding the privatization of Pakistan International Airlines (PIA) and the proposed transfer of ownership to local investors.
Sundas Amin stressed that an export-led economy was essential for increasing GDP and emphasized that sustainable economic growth depended on continuity in economic policies and political stability.
“Long-term economic progress can only be achieved through consistent policymaking and a stable political environment,” she said.
Economist Sumbal Riaz said that economic survey report 2026 was highly encouraging.
She said that revenue collection increased from $32.6 billion in June 2024 to $41.9 billion in June 2025 and further to $46.4 billion in June 2026. This represents an increase of nearly $14 billion over two years, reflecting overall growth of 46 percent.
The experts described agriculture as the backbone of the national economy, reiterating that the sector recorded growth of 2.89 percent in FY26 compared to 1.53 percent in the previous year despite flood-related challenges. The livestock sector also maintained strong growth momentum during FY 2025-26.
According to the Pakistan Economic Survey, major crops posted modest growth of 0.65 percent, reflecting mixed production trends. Wheat production increased by 4.3 percent, rising from 28.396 million tonnes to 29.605 million tonnes. Rice production grew by 2.8 percent, increasing from 9.723 million tonnes to 9.998 million tonnes, while sugarcane output rose by 6.2 percent, from 84.24 million tonnes to 89.45 million tonnes.
However, maize production declined by 2.68 percent, falling from 9.037 million tonnes to 8.794 million tonnes, while cotton production decreased slightly by 0.5 percent, from 7.084 million bales to 7.052 million bales.
Other crops recorded growth of 2.43 percent, driven by substantial increases in the production of gram (50.4 percent), potatoes (27.6 percent), mangoes (11.6 percent), bananas (30.8 percent), turmeric (25.1 percent), and chillies (9.2 percent).
Cotton ginning and miscellaneous agricultural activities registered marginal growth of 0.07 percent due to lower cotton output. Livestock grew by 3.75 percent compared to 2.95 percent in the previous year, supported by a 3.46 percent increase in output despite a 4.5 percent decline in green fodder availability.
Similarly, forestry and fishing sectors posted growth rates of 2.02 percent and 1.66 percent, respectively. They said Green Pakistan initiative has increased forest-covered areas that will help mitigate the effects of climate change.
The Federal Government livestock programs have increased meat and milk production in Khyber Pakhtunkhwa.
The experts concluded that the government deserves appreciation for achieving substantial economic progress during the current fiscal year despite challenging domestic and international conditions.
They expressed hope that the federal budget for fiscal year 2026-27 would provide maximum incentives to agriculture, industry, exports, and other socio-economic sectors to further accelerate GDP growth.
