Key indicators show strong growth as Pakistan moves towards economic transformation: Ahsan Iqbal

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal provided insights into Pakistan's economic progress in the Monthly Development Update for August. Iqbal highlighted that while the country has achieved macroeconomic stability, the next focus is on translating this stability into sustainable economic transformation under the URAAN Pakistan initiative.

The government's commitment to transparency and regular reporting of economic position, progress, and challenges was emphasized. Iqbal noted that Pakistan has overcome a challenging economic adjustment period, and the stability achieved over the past few years has been hard-earned. He emphasized that the URAAN Pakistan initiative aims to translate this stability into sustainable economic transformation, focusing on exports as a key driver to create more jobs, improve incomes, and enhance the quality of life for the people of Pakistan.

The beginning of the fiscal year 2026-27 has shown encouraging economic signals, with the Consumer Price Index (CPI) inflation easing to 9.2% in July 2026 from 11.7% in May 2026. The government is closely monitoring markets and prices through the National Price Monitoring Committee (NPMC), focusing on supply chain strengthening, essential commodity quality, and timely administrative measures to maintain affordability.

Workers' remittances, a significant source of external-sector resilience, reached $3.6 billion in July 2026, up 13% from July 2025. The industrial sector also showed recovery, with Large-Scale Manufacturing (LSM) recording a 5.0% average growth in FY2025-26, up from a 0.7% contraction in the previous year. Goods exports increased by 9.4% to $3 billion in July 2026, while total exports of goods and services rose by 13% to $3.9 billion.

Imports also increased by 13% to $7.3 billion in July 2026, reflecting strengthening domestic economic activity. Despite higher imports, the current account deficit remained contained at $328 million in July 2026, compared to $529 million the previous year. Fiscal consolidation is a key pillar of the economic reform agenda, with the Federal Board of Revenue (FBR) tax collection increasing by 8.4% to Rs820.9 billion in July FY2026-27.

The fiscal deficit narrowed to 2.6% of GDP in FY2025-26, down from 5.4% in FY2024-25, marking the lowest fiscal deficit in two decades. The Central Development Working Party (CDWP) played a crucial role in improving public investment decisions, with nine projects approved and nine recommended for the Executive Committee of the National Economic Council (ECNEC) during July 2026.

These approved projects are expected to generate around 7,851 direct and 14,053 indirect jobs, underscoring the government's commitment to employment-oriented, inclusive, and sustainable development.