Islamabad, Pakistan: Pakistan’s GDP growth reached 3.7% in fiscal year 2025-26, missing the 4.2% target, Finance Minister Senator Muhammad Aurangzeb said Thursday.
Aurangzeb announced the figure while unveiling the Pakistan Economic Survey 2025-26 in Islamabad, a day before the federal budget. The economy grew by 3.7%, missing the government’s 4.2% target.
The finance minister said regional tensions, global tariff uncertainty and conflict in the Middle East affected economic activity during the outgoing fiscal year.
🚨 GDP growth in the last fiscal year was 3.7 percent, the highest level in the last 4 years. It was negative in 2023.
-Muhammad Aurangzeb pic.twitter.com/CNExXwSPLE
— Asad Nasir (@asadnasir2000) June 11, 2026Aurangzeb said the latest growth rate marked Pakistan’s highest economic expansion in four years. The economy expanded to $452 billion, while services grew 4.9% and large-scale manufacturing rose 6.1%.
The survey cited improvement in large-scale manufacturing and services. It also said remittances and exports of garments and home textiles recorded growth during the year.
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Pakistan’s sports exports exceeded $3 billion, while the debt-to-GDP ratio stood at 68.5%. Aurangzeb also said the government would launch a new tax operating system next year.
The finance minister acknowledged the United Arab Emirates’ continued support for Pakistan’s economy. The federal government is scheduled to announce the budget a day after the survey’s release.
