Key facts
- Pakistan's economic survey projects 3.7% real GDP growth for fiscal year 2026.
- Average CPI inflation was projected at 6.7% for July-May.
- The current account deficit was $252 million in July-April.
- The trade deficit reached $23.53 billion from July to March.
- The fiscal deficit was 0.7% of GDP in July-March, with a 3.2% primary surplus.
- Public debt stood at 83,285 billion rupees by end-March.
Pakistan's annual economic survey projects real GDP growth at 3.7% for the fiscal year ending June 2026, according to a report released on Thursday. The government has missed targets for GDP growth, inflation, savings, and investment.
The survey indicated that average CPI inflation was seen at 6.7% in the July-May period, with price stability broadly preserved despite geopolitical impacts on energy prices. The current account deficit stood at $252 million in the July-April period, while the trade deficit from July to March was $23.53 billion.
The fiscal deficit was reported at 0.7% of GDP in the July-March period, which the survey described as the strongest fiscal performance in decades. A primary surplus was projected at 3.2% of GDP, and public debt was 83,285 billion rupees by the end of March.
Overall fiscal performance is considered encouraging, supported by expenditure control, revenue mobilization, provincial surpluses, and ongoing fiscal reforms. The government missed targets for increasing investment and savings, with investment remaining stagnant at 14.4% and savings plunging to 14% of the national economy.
Provisional growth rates for agriculture, industry, and services were 2.89%, 3.51%, and 4.09% respectively. Large-scale manufacturing grew 6.11% from July to March, with notable contributions from food, tobacco, and automobiles. However, the electricity, gas, and water supply industry contracted by 10.63%.
The size of the economy rose to $452.1 billion in FY26 from $410.96 billion in FY25, driven mainly by the services sector. Per capita income slightly increased to $1,901 in FY26 from $1,824 in FY25, though it remains the lowest in the region.