Islamabad: Pakistan’s economy is showing signs of recovery with notable growth in exports, industry, and remittances, according to Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal. The fiscal deficit has fallen to 2.6 percent, the lowest in two decades, marking a significant step towards economic transformation under the URAAN Pakistan initiative.

According to Press Information Department, the Monthly Development Update for August, presented by Iqbal, highlighted the government’s commitment to transparency in economic reporting. The minister emphasized that while macroeconomic stability has been achieved, the focus is now on translating this stability into sustainable transformation, with exports driving job creation and income improvements.

The beginning of FY2026-27 has shown promising economic indicators, with inflation easing to 9.2 percent in July, down from 11.7 percent in May. Remittances increased by 13 percent to $3.6 billion, supporting Pakistan’s foreign exchange position and household incomes. Large-Scale Manufacturing showed a 5.0 percent growth, and goods exports rose by 9.4 percent, reflecting recovery in industrial and external sectors.

The government’s fiscal discipline efforts have resulted in a narrowed fiscal deficit, and the Federal Board of Revenue tax collection increased by 8.4 percent. Public investment projects, aligned with URAAN Pakistan, continue to generate employment and enhance economic returns. The focus remains on human capital development and regional connectivity initiatives to sustain growth and improve living standards.