Addressing concerns over petroleum prices, Planning Minister Ahsan Iqbal said adjustments in petroleum product prices are directly linked to fluctuations in international oil markets and are necessary to maintain macroeconomic balance and fiscal discipline.

Speaking at a media briefing to launch the Ministry of Planning’s Monthly Development Update for July, Iqbal said Pakistan had successfully moved its economy away from the risk of default and onto a path of recovery and stability. The government’s priority now was to protect this stability and turn it into sustainable growth, increased investment and more employment opportunities under the Uraan Pakistan framework.

Pakistan’s economy demonstrated a broad-based recovery during FY2025-26, with GDP growth improving from 3.2% to 3.7%. Agriculture expanded by 2.9%, services recorded 4.1% growth, and the industrial sector maintained positive momentum with 3.5% growth.

Despite global inflationary pressures, inflation remained contained at 7.1%, below the government’s target of 7.5%. Workers’ remittances increased by 8.6% to $41.6 billion, while total exports of goods and services reached $40.9 billion. Services exports registered an 18.7% increase, growing from $8.5 billion to $10 billion.

The current account deficit remained contained at only $139 million, demonstrating continued fiscal discipline.

Iqbal announced that the government has set a 4% GDP growth target for FY2026-27, emphasising that growth must be achieved without repeating past fiscal and external imbalances. Future economic expansion would be driven by higher productivity, exports, investment and innovation.

“The next phase of economic policy is to convert macroeconomic stability into investment, jobs and improved living standards,” he said.

Large Scale Manufacturing (LSM) recorded 5.8% growth during July-May FY2025-26, compared to a contraction of 1.1% in the previous year. The automobile sector registered an exceptional 58.8% increase, while significant growth was also recorded in electrical equipment, tobacco, food and textiles.

Federal Board of Revenue (FBR) revenues increased from Rs11.7 trillion to Rs13 trillion, with the next fiscal year’s target set at over Rs15.2 trillion. Iqbal also announced the government is reviving the US-Pakistan Knowledge Corridor Programme and that the University of Illinois Chicago has expressed interest in establishing a campus in Pakistan.

He said the government will focus on protecting purchasing power, reducing poverty and creating employment opportunities, particularly for youth. Strict enforcement of OGRA-notified prices will be ensured, with action against profiteering and hoarding.