Pakistan economy grows 3.7% despite shocks: Aurangzeb

Finance Minister Muhammad Aurangzeb has said Pakistan’s economy grew by 3.7% in FY2025-26, describing the performance as a reflection of “resilience and discipline” amid a challenging global and domestic environment.

Speaking at a press briefing in Islamabad while presenting the Pakistan Economic Survey (PES), the minister said the outgoing fiscal year began with uncertainty due to global tariff-related pressures. 

He noted that by the end of July, Pakistan had improved its position, particularly in terms of export competitiveness, including to the United States.

Aurangzeb said the country then faced a series of major shocks, including devastating floods in August and September 2025, followed by a regional conflict in March 2026. “These challenges tested Pakistan’s resilience,” he said, adding that the government managed to maintain economic stability and continue its path from stabilisation towards growth.

He said GDP growth for FY2025-26 was recorded at 3.7%, making it the highest rate in four years. He added that global economic growth had slowed to 3.1% from 3.7% due to geopolitical and economic disruptions.

Providing context, the finance minister noted that Pakistan’s GDP growth stood at -0.2% in FY2023, rose to 2.6% in FY2024, and further improved to 3.2% in FY2025 before reaching 3.7% in the current fiscal year.

Aurangzeb also acknowledged that earlier projections had anticipated growth above 4%, but said this was not achieved due to the impact of ongoing geopolitical tensions, including conflict in the Middle East.

Despite missed targets, he said Pakistan’s economy has reached a historically high size of Rs126.9 trillion, or approximately $455.1 billion, describing it as a key milestone in the country’s macroeconomic trajectory.

The Pakistan Economic Survey is an annual document that reviews economic performance ahead of the federal budget and is widely used as a benchmark for fiscal and policy planning.