The Pakistan Economic Survey 2025-26 presents encouraging signs for the economy. The country’s GDP growth reached 3.7 per cent, higher than last year’s 3.18 per cent. Although this fell short of the government’s target of 4.2 per cent, it still reflects a gradual improvement after several difficult years. The survey highlights positive developments across many sectors. Agriculture grew by 2.89 per cent despite severe floods, while industry expanded by 3.51 per cent. Large-scale manufacturing, an important indicator of industrial activity, recorded growth of 6.1 per cent. The services sector, which contributes the largest share to the economy, also performed well with growth of 4.09 per cent.
The government deserves credit for maintaining economic discipline during a year marked by natural disasters, regional tensions and global uncertainty. Fiscal indicators have improved, the budget deficit has narrowed, and public debt as a share of GDP has declined. Foreign exchange reserves have strengthened, while workers’ remittances continue to provide valuable support to the economy.
However, these achievements should be viewed with caution. Economic growth alone does not guarantee better living standards for everyone. Inflation, although much lower than in recent years, remains a concern for ordinary citizens. The survey also notes an increase in poverty and inequality. Many households are still struggling with rising costs and limited economic opportunities. This is why policymakers must focus on stability rather than chasing rapid growth. Pakistan’s economy has often experienced cycles of fast expansion followed by painful crises. Sustainable progress requires consistent policies, careful management of public finances and continued efforts to strengthen exports, investment and productivity.
The government should continue reforms that improve tax collection, encourage business activity and support digitalisation. At the same time, greater attention must be given to education, healthcare and social protection so that economic gains reach a wider segment of society. *