Pakistan economy stabilising, recovery path strengthened: Ahsan Iqbal

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal on Saturday said Pakistan’s economy has demonstrated notable stabilisation and is steadily moving on the path to recovery during the first eight months of fiscal year 2025–26.

Presenting the Monthly Development Update for February 2026 in Islamabad, the minister said prudent and well-coordinated macroeconomic management has helped restore economic stability and support sustainable growth.

He said price stability remains a key priority of the government, adding that the National Price Monitoring Committee is regularly reviewing the supply and prices of essential commodities across the country.

According to the minister, average inflation eased to 5.5% during July–February FY2025–26 compared to 5.9% during the same period last year, while inflation in February 2026 stood at 7%.

He noted that prices of several essential food items declined significantly, including eggs by 22.4%, chicken by 20%, and potatoes by 16%.

However, Ahsan Iqbal cautioned that tensions in the Middle East and developments in global energy markets could pose risks to domestic inflation in the coming months.

Highlighting industrial performance, the minister said the Large-Scale Manufacturing (LSM) sector recorded a 4.8% year-on-year growth during July–December FY2025–26, marking a strong recovery compared with last year.

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He added that 14 out of 22 sectors posted positive growth, including automobiles, non-metallic mineral products, beverages, wearing apparel, food, textile and tobacco.

On the fiscal side, tax collections reached Rs8.1 trillion during July–February FY2025–26 compared to Rs7.3 trillion in the same period last year, reflecting improved tax compliance and expanding economic activity.

The minister further said remittances from overseas Pakistanis increased by 11.3% to $23.2 billion during July–January FY2026 compared to $20.9 billion in the same period last year.

Discussing the external sector, he said exports of goods and services reached $24 billion during July–January FY2025–26, while imports increased to $44.4 billion due to stronger demand for intermediate and capital goods.

He added that services exports also grew by 18.8% to $5.7 billion, largely driven by expansion in ICT exports.

Ahsan Iqbal said development spending also showed progress, with Public Sector Development Programme utilisation reaching 36% of the total Rs1 trillion allocation during July–February FY2025–26.

Concluding his briefing, the minister urged citizens to adopt responsible consumption practices and support national efforts aimed at strengthening Pakistan’s economy amid global economic challenges.