Pakistan’s economy grew by 3.7% during FY2025-26, marking its strongest performance in four years, according to the latest Economic Survey. Officials stated that economic growth could have exceeded 4% if regional tensions and conflict-related disruptions in the Middle East had not impacted trade, investment, and overall economic activity.
The survey highlighted improvements across several sectors, including services, agriculture, and industry, reflecting a gradual recovery in economic conditions. Government officials credited stabilization measures, improved macroeconomic indicators, and increased business confidence for supporting growth during the fiscal year.
Despite ongoing global and regional challenges, the economy showed resilience, with policymakers expressing optimism about sustaining momentum through continued reforms, investment, and export growth.
