ISLAMABAD – The Federal Ministry of Finance has released its monthly economic outlook report, stating that the nation’s economy is on a steady path to recovery with stabilizing economic activities. The report highlights the recent Staff-Level Agreement with the IMF as “an acknowledgment of strong economic performance.”
While noting positive indicators, the report also quantified the impact of recent floods, estimating a loss of 430 billion PKR to the agricultural sector alone, which subsequently impacted food prices.
On the industrial front, Large-Scale Manufacturing (LSM) grew by 4.4% during July-August. Significant improvement was seen in the automobile, cement, and construction sectors, with domestic cement consumption rising by 15% and exports by 21%.
The most significant achievement was on the fiscal front. Federal revenue recorded an extraordinary increase of 231% during July-August, while FBR’s tax collection grew by 12.5% to 2,884 billion PKR. This resulted in the fiscal deficit turning into a 1,509 billion PKR surplus.
The external sector also showed improvement. The current account deficit for July-September was $594 million, but a surplus of $110 million was recorded in September. Remittances grew by 8.4% to $9.5 billion, and foreign exchange reserves reached $19.9 billion.
However, foreign investment saw a decline of 34%, dropping to $569 million. The report noted that inflation was recorded at 5.6% in September 2025 and is expected to remain between 5-6% in the coming months.
