Islamabad: Federal Minister for Planning, Development, and Special Initiatives Prof. Ahsan Iqbal announced the launch of the Ministry of Planning’s Monthly Development Update for July 2026, outlining the government’s economic priorities and strategic direction for the fiscal year 2026-27. The minister emphasized the country’s shift towards economic recovery and stability, with a focus on sustainable growth, increased investment, and employment opportunities.
According to Press Information Department, Prof. Ahsan Iqbal, during a media briefing, stated that Pakistan had successfully steered its economy away from the risk of default. The government’s priority is to maintain economic stability and transform it into long-term growth under the Uraan Pakistan national transformation framework. The minister highlighted the challenges posed by the global economy, including geopolitical tensions, energy supply disruptions, and volatility in international trade. Despite these hurdles, Pakistan remains committed to strengthening macroeconomic stability through fiscal discipline and effective economic management.
The minister reported a broad-based economic recovery during the fiscal year 2025-26, with GDP growth rising from 3.2 percent to 3.7 percent. Key sectors such as agriculture, services, and industry contributed to this growth. Inflation was contained at 7.1 percent, below the government’s target, while workers’ remittances and exports showed significant increases. Despite global uncertainties, the current account deficit remained contained, reflecting fiscal and external sector discipline.
Looking ahead, the government has set a 4 percent GDP growth target for the fiscal year 2026-27, focusing on productivity, exports, investment, and innovation. The minister underscored the importance of converting macroeconomic stability into investment and job creation, emphasizing the government’s commitment to reducing poverty and supporting vulnerable segments of society.
Addressing issues related to petroleum prices, the minister noted the necessity of adjustments in line with global oil market fluctuations to maintain macroeconomic balance. He assured that any decline in international oil prices would result in relief for consumers. The minister also announced strict enforcement measures against profiteering and hoarding, alongside steps to ensure an uninterrupted supply of petroleum products.
Prof. Ahsan Iqbal highlighted the growth of Large Scale Manufacturing, reporting a 5.8 percent increase during July-May of the fiscal year 2025-26. The Federal Board of Revenue’s revenues also rose, and fiscal reforms strengthened the national exchequer. Development projects approved during the fiscal year are expected to generate significant employment opportunities.
The minister shared plans for transforming Islamabad into a Smart City and announced educational reforms aimed at aligning higher education with the demands of modern industries. Under Uraan Pakistan, initiatives will focus on equipping the youth with future-ready skills. The minister also reported on new opportunities for collaboration in higher education and technology following his visit to the United States.
Finally, the minister emphasized Pakistan’s expanding international cooperation, with agreements to enhance collaboration with countries like Türkiye, Uzbekistan, and Denmark in various sectors. Concluding the briefing, Prof. Ahsan Iqbal reiterated the government’s commitment to preserving macroeconomic stability, accelerating reforms, empowering youth, and ensuring the benefits of economic recovery reach all citizens.