Pak economy grew at 3.7 pc, misses target: finance minister
International 11 Jun, 2026

Pak economy grew at 3.7 pc, misses target: finance minister

Business To Business, Islamabad, 11th June, 2026:   Pakistan recorded economic growth of 3.7% in the fiscal year 2025-26, according to Muhammad Aurangzeb.
The growth rate fell short of the government's original 4% target, but Aurangzeb described it as the country's strongest economic performance in the past four years.
Announcement Ahead of Budget
The figures were released during the launch of the Pakistan Economic Survey 2025-26 (PES) in Islamabad, ahead of the presentation of Pakistan's national budget.
Pakistan's fiscal year concludes on June 30.
Key Points

  • GDP growth in FY2025-26: 3.7%
  • Official target: 4.0%
  • Claimed global growth comparison: 3.1%
  • Highest annual growth rate for Pakistan in four years
Aurangzeb said Pakistan's growth rate remained above the estimated global average despite difficult international conditions.
Impact of West Asia Crisis
The finance minister attributed part of the shortfall from the growth target to the ongoing conflict in West Asia.
The crisis has affected many economies through:
  • Higher energy prices.
  • Increased shipping and logistics costs.
  • Supply-chain disruptions.
  • Greater uncertainty in global markets.
For Pakistan, which relies heavily on imported energy and external financing, such developments can have a significant impact on economic performance.
Economic Context
The growth figure comes as Pakistan continues efforts to stabilize its economy after years of:
  • High inflation.
  • External financing pressures.
  • Currency volatility.
  • Balance-of-payments challenges.
Recent policy measures have focused on fiscal consolidation, improving foreign exchange reserves, and maintaining macroeconomic stability.
Attention will now shift to the federal budget, where the government is expected to outline:
  • Revenue and taxation plans.
  • Public spending priorities.
  • Economic reform measures.
  • Growth and inflation targets for FY2026-27.
While the 3.7% growth rate indicates a stronger recovery than in recent years, the miss against the official target highlights the continuing challenges facing Pakistan's economy amid a difficult global environment.

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