The federal government will release the Economic Survey of Pakistan 2025-26 on Thursday, providing a comprehensive review of the country’s economic performance ahead of the presentation of the federal budget for FY2026-27.
According to official estimates, Pakistan’s economy fell short of several major targets during the outgoing fiscal year despite improvements in remittances and the services sector.
The government expects the economy to grow by 3.7 percent, below the annual GDP growth target of 4.2 percent. International financial institutions, including the International Monetary Fund, World Bank, and Asian Development Bank, had also projected lower-than-target growth for Pakistan.
Average inflation remained close to the government’s target, recording 7 percent during the first eleven months of FY2025-26 against a target of 7.5 percent. However, inflation accelerated sharply in May, reaching 11.66 percent, signaling renewed price pressures in the economy.
Per capita income also remained below expectations. While the annual target was set at Rs. 560,803, officials estimate actual per capita income at Rs. 533,629. In dollar terms, however, per capita income increased by $150 to $1,901.
The agriculture sector grew by 2.89 percent, significantly below the target of 4.5 percent, while industrial growth stood at 3.51 percent against a target of 4.3 percent.
In contrast, the services sector exceeded expectations, expanding by 4.09 percent, slightly above the official target of 4 percent.
Worker remittances continued to support the economy, rising by 9 percent during the fiscal year. Overseas Pakistanis sent approximately $38 billion during the first eleven months, with total remittances expected to reach $41 billion by the end of FY2025-26.
Pakistan’s export performance remained below expectations. Against an annual target of $35.3 billion, exports reached around $28 billion during the first eleven months of the fiscal year.
Imports stood at $63 billion, remaining slightly below the target of $65.2 billion, reflecting continued pressure on the country’s external sector.
Officials said the Economic Survey will provide policymakers with a detailed assessment of economic challenges and achievements, helping shape reforms and priorities for the upcoming fiscal year.
