---
title: 'Economic Survey 2025-26: Pakistan Sees GDP Growth at 3.7%, Target Missed By 0.5%'
url: 'https://thediplomaticinsight.com/pakistan-economic-survey-2025-26-gdp-3-7/'
author: 'News Desk'
date: '2026-06-11T17:08:45+05:00'
categories:
  - 'Economy'
  - 'Pakistan'
---

# Economic Survey 2025-26: Pakistan Sees GDP Growth at 3.7%, Target Missed By 0.5%

**Islamabad (TDI): **Pakistan’s economy expanded by 3.7% in fiscal year 2025–26, according to the Economic Survey released Thursday by Finance Minister Muhammad Aurangzeb.

The growth is an improvement on last year’s performance, but a shortfall against the government’s own ambitions and a reminder of the structural challenges still facing the country.

The survey, presented a day before the federal budget, showed the economy growing from 3.2% in FY25 to 3.7% in FY26; lifting the total size of the economy to $452.1 billion.

Per capita income rose to $1,901, up $150 from the previous year. Yet the headline figure masked significant underperformance: the government had set a GDP growth target of 4.2%, and nearly every major sector fell short.

Agriculture grew by just 2.89% against a target of 4.5%. Crop output delivered mixed signals as wheat production rose 4.3% to 29.6 million tons, while maize output contracted.

**Read More: [Pakistan’s Dangerous Dependence on Migrant Remittances](https://thediplomaticinsight.com/pakistan-dangerous-dependence-remittances/)**

Industrial growth came in at 3.51%, below the 4.3% target, though the services sector offered some consolation by slightly exceeding its 4% goal, expanding at 4.09%

Average inflation ran at around 7% over the first eleven months of the fiscal year; within striking distance of the government’s 7.5% target and a dramatic improvement from the double-digit rates of recent years.

But prices surged again in May, with monthly inflation jumping to 11.66%, reigniting concerns about household cost pressures heading into the new budget cycle.

One of the brighter spots was worker remittances, which rose 9% during the year, continuing to serve as a vital pillar of Pakistan’s external finances.

The Federal Board of Revenue collected Rs11.229 trillion in taxes, and the country’s primary fiscal surplus reached 3.5% of GDP; a sign that the government’s austerity drive under its $7 billion IMF program has delivered some results.

**Read More: [Middle East Conflict Poses Risks to Pakistan Economy: SBP](https://thediplomaticinsight.com/middle-east-conflict-poses-risks-pakistan-economy/)**

Exports fell 5.4% to $25.8 billion between July and April, while imports climbed 8.5% to $52.8 billion, swinging the current account from a surplus of $1.7 billion in the same period last year to a deficit of $200 million.

The survey’s release sets the stage for the federal budget, to be unveiled on Friday. With investment stuck at 14.4% of GDP and savings declining to 14%, economists say the government faces a narrow path.

International institutions including the IMF, World Bank, and Asian Development Bank had each projected growth broadly in line with the 3.7% figure, suggesting limited upside surprises.

The ADB, which forecast 3.5% growth for FY26, has projected a rebound to 4.5% in FY27; contingent on sustained reform and a stable global environment.