ISLAMABAD (TNS) Pakistan is at a point from which it must move forward; all economic indicators are satisfactory, with exports and remittances, as well as IT exports, increasing. Pakistan has created a history of economic stability and diplomatic successes. All indicators of the country’s economy are positive, and the country is on the path of development and prosperity. The country’s foreign exchange reserves have reached $21.19 billion. Under the insightful guidance and effective strategy of SIFC, Pakistan’s economic scenario has entered a new and bright era. The partnership between the government and the private sector is strengthening, and economic activities are moving towards enviable growth. The government expresses satisfaction with the economic situation. The government is taking steps on a priority basis to create ease of doing business for investors, so that domestic and foreign investment can be promoted. Information Minister Attaullah Tarar has said that Pakistan’s economy is continuously moving towards stability and development.
The country’s key economic indicators are improving, foreign exchange reserves are increasing, and the policy rate is gradually decreasing. Increasing investment is an effective means of sustainable economic growth and creating new employment opportunities. The government, in collaboration with the private sector, is taking steps to improve the business environment and restore investor confidence. China’s development is a role model for Pakistan, and we should learn from its experiences and make our economic policies effective. The good news for the country’s economy continues, and the government is achieving extraordinary successes at all levels in the economic field. Pakistan’s economy is on its bright journey and is showing evidence of remarkable progress in industrial, agricultural, and other important sectors. The welcome results of SIFC’s strategic policy reforms are clear, which have increased the country’s economic stability and investment opportunities. For the first time since 2015, that is, after almost ten years, the current account surplus is at its highest level. The current account has been in surplus for four consecutive months. The main reason for this is the increase in domestic exports and remittances. In the first five months of the fiscal year, a 33 percent increase was also seen in external receipts, which reached $15 billion by November. Remittances have increased by 35 percent. The Finance Minister has expressed hope that remittances will exceed $35 billion in the current fiscal year. According to the Finance Minister, Pakistan’s export sector has also seen improvement. Going into a current account surplus is welcome for the country’s economy, especially in a country where there was a crisis and uncertainty two years ago. On the other hand, the State Bank has cut interest rates for the fifth time in a row. The current economic situation indicates that there will be a further decrease in the coming period. The reduction in interest rates indicates a move in the right direction for the country’s economy. Economists are interpreting the reduction in interest rates by the central bank as economic stability. While the reduction in interest rates makes it easier for traders to get loans, it also creates opportunities for the economy to run more smoothly. The inflation rate in Pakistan has fallen to a 78-month low. According to data released by the Bureau of Statistics, the inflation rate was recorded at 4.9 percent in November 2024, while in October 2024 it was 7.2 percent. In November 2023, it was 29.2 percent. The numbers are showing that inflation has fallen to a six-year low. One reason for the delay in the effects of all these indicators, especially the reduction in inflation, is the failure of the administrative machinery. Due to the ineffectiveness of price control committees at the local level, these positive indicators seem to be limited to news only, but they are still proving beneficial for the government. The stock market has broken all historical records, reflecting investor confidence in Pakistan.
The GDP grew by 3.71 percent during the current fiscal year, which is 2.15 percent higher than the previous year, indicating encouraging progress in the country’s economy. According to Federal Minister for Planning Ahsan Iqbal, the industrial sector recorded a remarkable growth rate of 9.38 percent, which is a sign of economic boom compared to a mere 0.12 percent growth in the previous year. The growth of 2.89 percent in the agricultural sector and 6.29 percent in the livestock sector is a guarantee of stable and balanced growth of the country’s economy. Significant growth in the agricultural sector has increased productivity, stability, and farmers’ income, which is a strong foundation for the country’s economic future.
Manufacturing recorded a growth of 5.78 percent, while the automobile and transport sectors saw impressive growth of 84.6 percent and 40.7 percent, respectively. The financial and insurance sector witnessed a remarkable recovery from the negative impacts of the previous year, with a growth of 10.36%. The construction sector, education, health, public administration, and forestry sectors also recorded significant growth rates, which is a testament to the stable and balanced trend of the economy. Pakistan’s stable economy and balanced growth rate are making the country more attractive for global investment. With continuous positive performance in key sectors, Pakistan is also achieving economic stability, growth, and global recognition. SIFC’s visionary, insightful, and effective strategy is giving a new dimension to the country’s sustainable economic growth.Under the SIFC’s investor-friendly digital reform framework, investment in Pakistan’s financial sector has started in 2026. Due to SIFC’s effective and coordinated facilitation, Pakistani digital technology and IT services have gained access to global trade markets. Under SIFC’s strategic vision, Pakistan is committed to promoting technical expertise, digital services, and technology exports.
The continued growth of Pakistan’s IT industry is evident in the global expansion of the leading company, Supernet. Supernet Global is establishing its first regional hub in Dubai, from where it will provide services to global institutions, carriers, and enterprise clients. The company plans to establish a foothold in the emerging markets of the Middle East, Africa, and Central Asia, where Pakistan will be represented in the multi-billion-dollar technology sector. According to Supernet, the satellite communications market is expected to grow significantly by 2030, which will strengthen Pakistan’s foreign exchange reserves. Supernet has clarified that technical and engineering services will continue to be available in Pakistan, which will increase exports of digital services. The company says that the global expansion strategy will play a significant role in introducing Pakistani talent, expertise, and technology internationally. The facilitation of SIFC is being described as key in connecting Pakistani IT talent and innovation with global markets, which is a positive development for the country’s tech sector and economic future. Global digital operator Vone Group has announced a new investment of $20 million in Mobilink Bank, which is being described as a manifestation of global confidence in Pakistan’s digital and Islamic banking sector. This investment is a continuation of the $15 million investment made in January 2025, which aims to further promote Micro, Small, and Medium Enterprises (MSME) financing, digital Islamic banking, and technology-based banking. According to officials, this move will help increase financial inclusion and expand modern banking facilities. According to Aamir Ibrahim, Chairman of Vone Group and Mobilink Bank, this investment is a clear sign of long-term confidence in the ongoing structural reforms in Pakistan’s digital financial system. He said that there is a huge potential for the promotion of digital banking in Pakistan, which will not only strengthen business activities but also improve the overall performance of the economy. This first foreign direct investment in 2026 is being described as a strong step towards Pakistan’s economic recovery, strengthening global confidence and sustainable growth under the guidance of SIFC, which is being considered a positive indicator for the country’s financial sector. Pakistan’s remittances have recorded a historic increase, which is clear evidence of global confidence in the country’s economy and the strong confidence of overseas Pakistanis. Remittances sent by overseas Pakistanis set a new record in December 2025. Adviser to the Minister of Finance Khurram Shahzad, while giving details on the confidence of overseas Pakistanis and record remittances, said that remittances sent by overseas Pakistanis in December 2025 exceeded $3.6 billion. According to him, remittances in December 2025 were about 17 percent higher than the $3.1 billion in December 2024. Remittances recorded a 13 percent increase in December 2025 compared to $3.2 billion in November 2025. Due to record remittances, total remittances in the first half of fiscal year 2026 have reached $19.7 billion. Total remittances in the first half of fiscal year 2026 are 41 percent higher than the same period last year, while total remittances in fiscal year 2026 are expected to exceed $41 billion. According to the data, Pakistanis sent the highest remittances of $813 million from Saudi Arabia in December 2025, while remittances of $726 million were received from the United Arab Emirates. Similarly, overseas Pakistanis sent $560 million from the United Kingdom and $302 million from the United States to Pakistan. The Advisor to the Finance Minister said that overall, there has been a significant increase in remittances from overseas Pakistanis in December 2025. He said that the strong involvement of overseas Pakistanis in the country’s economy is a guarantee of long-term stability, sustainable development, and a bright future.According to data released by the State Bank of Pakistan, the total inflow of remittances from overseas Pakistanis in December 2025 was $3.59 billion. In the same month last year, remittances were $3.1 billion, recording an annual increase of about 16.5 percent. On a monthly basis, this inflow was also 13 percent higher than the $3.2 billion in November. In the first half of the fiscal year 2025-26, the total remittances were $19.7 billion, which is 11 percent higher than the $17.8 billion in the same period last year. According to Topline Securities, the continuous increase in remittances was possible due to high export of manpower in the past years, low rate differential between the interbank and open market exchange rates and continuation of the incentive package. The report stated that the company maintains the remittance target for fiscal year 2026 at $41 billion, which is about 7.5 percent higher than the $38 billion in fiscal year 2025. Remittances play a key role in stabilizing Pakistan’s external accounts, boosting economic activity and improving the purchasing power of households that rely on remittances from abroad. The government also wants to maintain this trend through the use of formal channels and incentives. In August, the State Bank had said that since 2009, formal remittances have been promoted under the Pakistan Remittance Initiative, as a result of which the number of financial institutions has increased from 25 to more than 50, including conventional, Islamic, and microfinance banks as well as exchange companies. Similarly, the number of international institutions has increased from 45 to nearly 400. In December 2025, the highest amount of $813 million was received from Saudi Arabia, which is 6 percent more on an annual basis and 8 percent more on a monthly basis. Remittances from the United Arab Emirates increased from $631 million to $726 million, an increase of 15 percent on an annual basis. Remittances from the UK stood at $560 million, up 16 percent from November and 28 percent year-on-year. Remittances from the US stood at $302 million, down 1 percent year-on-year but up 9 percent month-on-month. Remittances from the European Union countries stood at $499 million, up 39 percent year-on-year. As a result of the government’s positive economic policies, the current account balance has been in surplus for the first time in the country’s history at $1.2 billion, up 229 percent year-on-year. So far, the current account balance has been in surplus at $1.86 billion, compared to a deficit of $1.65 billion in the same period of the previous fiscal year. Significant growth is also being seen in the export sector following the government’s efforts. The fruits of SIFC’s integrated economic reforms are evident, and a sustainable recovery has begun in the manufacturing sector. After the stabilization of the Pakistani economy, the industrial sector has been vibrant with new energy, and a significant acceleration has been recorded in the manufacturing sector. Pakistan’s manufacturing sector has reached its highest level since February 2025. According to the Purchasing Managers’ Index data, rising demand and improved production reflect the recovery in confidence. The Habib Bank Limited S&P Global Manufacturing Purchasing Managers’ Index reached 52.8 in December 2025, which is a clear sign of continued expansion. New orders were recorded at the highest level in the last nine months, reflecting a significant improvement in domestic production demand. Production activities in Pakistani industries continued for the second consecutive month, with the industrial sector moving towards further consolidation. Business confidence in Pakistan reached its highest level since July, which has strengthened the investment trend and increased employment opportunities due to increasing economic activities in the country. This positive development in the industrial sector is the practical fruit of SIFC’s effective economic policies and reform vision. According to the latest data from the Global Economic Gallup Survey, Pakistan has performed better than India and the global average in terms of economy and peace at the beginning of 2026. The survey was conducted in 60 countries. In Pakistan, 51 percent of people are optimistic about the coming year, while in India, this rate is 39 percent, and the global average is 24 percent. In terms of the economy, 53 percent of Pakistanis consider 2026 to be a year of prosperity. In the survey, Pakistan performed better than the global average on three key measures of overall optimism, economic prosperity, and expectation of peace, and surpassed India on two measures. As a result, despite the uncertain global environment, the Pakistani people are confident and optimistic about 2026, and the Global Economic Gallup Survey paints a better picture of Pakistan in terms of economic growth and global peace. Bloomberg confirmed a significant reduction in inflation and policy stability in Pakistan. Lower inflation than market estimates increased confidence and confirmed the policy direction.
