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Against a backdrop of geopolitical uncertainty, regional conflict and lingering climate-related disruptions, Pakistan’s economy posted its strongest growth in four years during FY26, though it still fell short of official targets.
Unveiling the Pakistan Economic Survey (PES), Finance Minister Muhammad Aurangzeb announced provisional GDP growth of 3.7 per cent, up from 3.18pc in FY25, 2.6pc in FY24 and a marginal contraction of 0.2pc in FY23.
While marking a visible recovery in economic activity, growth remained below the government’s 4.2pc target. The size of the economy expanded to a record Rs126.9 trillion ($452.1 billion), with per capita income rising to $1,901 from $1,751 a year earlier.
Aurangzeb noted that the recovery had taken place amid a slowing global economy, where growth eased to 3.1pc from 3.7pc. “We had expected growth to cross 4pc,” he said, citing regional instability and escalating conflict in the Middle East as key drags.
