Development report launched: Current data signals expansion in economic activity: Ahsan
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal said Pakistan’s exports rose by 0.7 percent in the first two months (July-August) of the 2026 fiscal year, reaching $5.11 billion compared to $5.07 billion during the same period last year.
Addressing a news conference to launch the monthly development report, he said the imports increased by 14.2 percent to $ 11.1 billion from $9.7 billion last year, primarily due to an increase in raw materials and machinery imports. This signals an expansion in domestic economic activity, he said.
The minister said in the first two months (July-August) of fiscal year 2026, the Consumer Price Index (CPI) inflation dropped to 3.5 percent from 10.4 percent last year.Prices continue to stabilise due to close monitoring of essential items reflecting effective government policy and its relief measures.
FY2024-25: Historic milestone achieved in PSDP spending: minister
He added that the Federal Board of Revenue (FBR) collected Rs. 1,661 billion in taxes during July–August FY2026, reflecting a 14.1 percent increase from Rs. 1,456 billion in the same period last year.
He said that tax revenue for August alone showed a notable rise of 13.5 percent. He said that the Pakistan Stock Exchange (PSX) has surpassed 154,277 points on September 5th, with market capitalization reaching Rs. 18.1 trillion. “This milestone reflects growing investors’ confidence and improving business sentiments driven by stronger international trade ties,” he said.
The minister further highlighted robust growth in the agriculture sector, which expanded by 36.9 percent to Rs 232.2 billion in July 2025, up from Rs. 169.6 billion a year earlier. He said the surge reflects stronger support for farmers and improved rural productivity. He noted that credit to the private sector rose 13percent year-on-year, increasing from Rs. 8.5 trillion in August 2024 to Rs. 9.6 trillion in August 2025, reflecting stronger business activity and investment.
He added that during July–August FY2026, Rs. 150 billion was authorized and Rs. 46 billion released under the Public Sector Development Program (PSDP), marking steady progress in executing projects within the Rs. one trillion portfolio.
The minister said, “During July–August FY2026, PSDP expenditure increased by 23.3 percent to Rs. 5.3 billion compared to Rs. 4.3 billion in the same period last year, reflecting stronger development spending momentum. In FY26, the Federal PSDP features 86 foreign-aided projects supported by an allocation of Rs. 229 billion (23percent of the PSDP).On the development side, the Ministry approved 05 projects through CDWP in August 2025, while 09 major projects were recommended to the Executive Committee of the National Economic Council(ECNEC). This demonstrates our dedication to accelerating key development initiatives.”
He said that China and Pakistan have agreed on multilateral finance options for the ML-1 Railway Project under the China-Pakistan Economic Corridor. He said that for this purpose, the negotiations are continuing with the Asian Development Bank (ADB).
He said the recently approved projects are expected to generate about 1,466 direct jobs and 31,530 indirect jobs across various sectors, driven by increased development activity. He added that in July 2025, the Ministry’s focus on cost rationalization in development projects resulted in savings of Rs 1.13 billion, underscoring a more prudent approach to planning and improved project efficiency.
He said that in August, the Ministry monitored 32 projects in FY2025 against the target of 20 projects, with an achievement of 160 percent. This proactive approach has led to notable time and cost savings,” he said.
He said that development initiatives include “the URAAN AI Techathon”, as Pakistanis harnessing the potential of startups, universities, and youth to create scalable AI solutions, paving the way toward the $1 trillion economic target by 2035.
He said, “The Pakistan One National Business Plan Competition,” under URAAN, will engage 10,000 entrepreneurs and support 500 scalable ventures, driving exports and growth in IT, Agri-Tech, renewable energy, and manufacturing to foster job-creating economic growth. He said Pakistan’s first Economic Census mapped 7.2 million establishments and 10 million informal enterprises, providing a landmark data set to drive evidence-based policy, SME formalization, and inclusive growth under URAAN Pakistan.”
About the flood, the Minister said the 2025 monsoon floods have tragically claimed 907 lives and damaged 671 km of roads, 239 bridges, housing, and agriculture across Khyber Pakhtunkhwa, Punjab, and Gilgit-Baltistan, highlighting Pakistan’s climate vulnerability. He said the government swiftly evacuated 2.35 million people and established1,744 relief camps.
Copyright Business Recorder, 2025