Pakistan posts steady growth in FY25-26 ahead of budget

June 11, 2026 (MLN): Pakistan's economy posted 3.7% growth in FY2025-26, with nominal GDP climbing to Rs126.9 trillion ($452.1 billion) and per capita income rising to $1,901, as fiscal consolidation deepened and the external account remained broadly stable.

The data was presented at the National Economic Council (NEC) meeting held on Wednesday, which reviewed economic performance for the outgoing fiscal year alongside approving the development plan for FY2026-27, according to sources close to the matter.

Real Sector Performance

Inflation averaged 6.7% in Jul-May FY2025-26, with food inflation at 3.9% and non-food at 8.6%, compared to an overall CPI of 4.6% in the same period of FY2024-25.

Fiscal & Monetary Performance

FBR tax collection grew 9.7% year-on-year to Rs11,229 billion in Jul-Apr FY2025-26, while the fiscal deficit narrowed sharply to 1.1% of GDP. Credit to the private sector expanded 42.2% to Rs986.7 billion in Jul-May.

Federal PSDP utilisation reached Rs590 billion, or 72% of the revised allocation of Rs820 billion, as of June 9, 2026, with the rupee component at Rs489 billion and the foreign loan component at Rs101 billion.

External Sector Performance ($ bn)

Workers' remittances rose 8.5% to $33.9 billion in Jul-Apr FY2025-26.

SBP foreign exchange reserves stood at $17.2 billion as of May 29, 2026, against $14.5 billion at end-June 2025.

The current account posted a marginal deficit of $0.2 billion in Jul-Apr FY2025-26, against a surplus of $1.7 billion in the same period of the prior year, as import demand picked up alongside economic recovery.

The NEC meeting came two day before the federal budget for FY2026-27 is scheduled to be presented to parliament on June 12, with the economic performance review and development outlay approvals setting the policy backdrop for the annual budget announcement.

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