ISLAMABAD: Federal Minister for Planning and Development Ahsan Iqbal has said that Pakistan’s economy is showing signs of recovery as inflation has eased, revenues have surged, and development spending has picked up pace.
Speaking at the release of the Monthly Development report in Monday, the minister said inflation dropped sharply to 3.5% in the first two months of FY2026, down from 10.4% last year, due to effective government monitoring and relief measures.
He added that the Federal Board of Revenue collected Rs. 1,661 billion in taxes during July–August, reflecting a 14% increase over last year, while August alone posted a 13.5% rise. The Pakistan Stock Exchange also hit a record 154,277 points, with market capitalization reaching Rs. 18.1 trillion, showing renewed investor confidence.
Highlighting growth in the agriculture and private sectors, Iqbal said farm credit rose by 37% to Rs. 232.2 billion, while private sector borrowing increased 13% to Rs. 9.6 trillion. Exports edged up to $5.11 billion, but imports grew by 14% to $11.1 billion, largely due to higher demand for machinery and raw materials.
On the development side, the government approved Rs. 150 billion worth of projects and released Rs. 46 billion in the first two months. Development spending was up by 23%, and monitoring efficiency reached 160% of targets, resulting in savings of Rs. 1.13 billion.
He also announced new initiatives under the URAAN programme, including an AI Techathon and a National Business Plan Competition to engage 10,000 entrepreneurs and support 500 ventures in IT, Agri-Tech, renewable energy, and manufacturing. Pakistan’s first Economic Census recorded 7.2 million businesses and 10 million informal enterprises, providing key data for policy planning.
Turning to recent floods, Iqbal said the 2025 monsoon floods claimed 907 lives and destroyed 671 km of roads and 239 bridges. The government evacuated 2.35 million people and set up 1,744 relief camps, with a committee now assessing total damages.
He also confirmed progress on the ML-1 railway project, cooperation with China under CPEC Phase-II, and Pakistan’s plan to send its first astronaut into space in 2026. He added that China, which imports $3 trillion annually, accounts for only $3 billion of Pakistan’s exports, a figure the government aims to raise to $60 billion.
