Pakistan’s economy showed a strong recovery in the fiscal year 2025-26. According to the Pakistan Economic Survey released on June 11, 2026, the country achieved a GDP growth of 3.7%. This is the highest rate in the last four years and better than last year’s 3.18%. The size of the economy reached a record $452 billion.
Finance Minister Muhammad Aurangzeb said the growth could have crossed 4% if not for the Middle East crisis, floods, and global uncertainties. Despite missing the 4.2% target, the government highlighted positive signs of stability and progress.
Per capita income rose by 9% to $1,901. Remittances from overseas Pakistanis are expected to cross $41 billion, providing strong support to the economy. Foreign reserves crossed $17 billion, while the fiscal deficit improved sharply to just 0.7% of GDP.
The services sector grew by 4.9%, manufacturing showed improvement, and exports and investment also increased. The government pointed to better taxation, digital economy growth, and infrastructure work as key drivers.
This performance marks a step forward from earlier challenges. Officials believe continued reforms and stability will help Pakistan achieve higher growth in the coming years. The survey brings hope for better jobs, incomes, and development across the country.
