According to the ministry’s Monthly Economic Update and Outlook report, Pakistan’s economy is expected to recover during the current fiscal year 2026-27, supported by strong foreign exchange reserves, improvements in the tax system and energy conservation measures.
The report said reforms in state-owned enterprises were expected to contribute to economic improvement, while the government remained focused on increasing tax collection and controlling expenditure. It described the budget surplus as a positive development for economic stability.
The ministry said measures to support low-income groups would continue, while improved agricultural output was expected to support economic activity. Better crop yields could increase rural incomes, boost business activity and benefit the food-processing industry.
An increase in construction activity was also expected to stimulate economic activity, the report said.
The ministry further projected growth in the output of some major industries, adding that machinery imports could help increase domestic production capacity.
Remittances and services exports were also expected to rise. Higher remittances would support national income and foreign exchange reserves, according to the report.
However, the ministry noted that the improvement in industrial production remained uneven, with performance varying across sectors.