Pakistan’s latest development indicators point to improving economic activity, with stronger large-scale manufacturing and higher remittances contributing to the country’s stabilisation efforts
Pakistan’s economy has maintained signs of stabilisation during the first ten months of the 2025-26 fiscal year, according to the government’s latest development update, with improvements reported in several key economic indicators.
The Planning Commission’s monthly development update highlighted a recovery in large-scale manufacturing, stronger remittance inflows and increased tax collection during the July-April period.
Large-scale manufacturing recorded growth of 6.5 percent during the July-March period compared with a contraction of 1.9 percent in the corresponding period of the previous fiscal year.
The report also showed that remittances increased to $33.9 billion during the July-March period, compared with $31.2 billion during the same period a year earlier.
Tax collection also increased, with Federal Board of Revenue receipts reaching around Rs10.3 trillion during the period covered by the report.
The figures provide some positive signals for the country’s economy, although the government continues to face challenges including higher import costs and pressure from global energy prices.
The development update said Pakistan’s economy had largely maintained its stabilisation momentum despite external pressures and the impact of the ongoing regional conflict.
The government has also been focusing on improving investment, industrial activity and employment generation through development projects.
According to the report, development initiatives have contributed to direct and indirect employment opportunities, while infrastructure and economic projects remain central to the country’s broader growth strategy.
The improvement in manufacturing activity is particularly significant because industrial growth can support employment, increase domestic production and reduce dependence on imported goods.
Higher remittances also remain an important source of foreign exchange for Pakistan and provide financial support to millions of families receiving money from relatives working abroad.
While the economic outlook remains subject to external risks, including oil prices and regional instability, the latest indicators offer some positive signs as Pakistan works to strengthen economic stability and encourage sustainable growth.
