Goods and services: July exports surge 13.1pc to USD3.94bn YoY: minister

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said on Saturday that Pakistan’s exports of goods and services reached USD 3.94 billion in July 2026, showing a growth of 13.1 percent over USD 3.48 billion recorded in the same month of 2025.

“The external sector also started FY2026-27 on an encouraging note. Goods exports increased by 9.4 percent to USD 3.0 billion in July 2026, compared with USD 2.8 billion in July 2025. However, total exports of goods and services rose by 13 percent to USD 3.9 billion from USD 3.5 billion during the same month a year earlier,” the minister said while presenting the Monthly Development Update of August, 2026.

He said the increase was supported by growth in key export groups, including surgical goods at 16.3 percent, food at 8.0 percent, leather goods at 7.8 percent, and textiles at 3.9 percent.

READ ALSO: July exports surge by 10pc YoY

“Industrial recovery strengthened further. Large-Scale Manufacturing (LSM) grew by 5 percent during FY2025-26, a sharp reversal from the previous year’s 0.74 percent contraction. Supported by these gains, both fiscal and external indicators remained robust. Federal Board of Revenue (FBR) tax collection rose by 8.4 percent to Rs820.9 billion in July. On the external front, workers’ remittances increased by 13 percent to USD 3.63 billion, reflecting sustained external-sector stability. Similarly, in July, the current account deficit remained contained at USD 328 million, compared with USD 529 million in the same month last year,” the minister said.

He said the LSM recovery was broad-based, with 16 out of 22 sectors recording positive growth.

The strongest performance was recorded in automobiles at 57.8 percent, transport equipment at 42.4 percent, electrical equipment at 14.3 percent, tobacco at 12.6 percent, and food at 7.0 percent.

Ahsan Iqbal said the government’s focus during FY2026-27 would remain on sustaining economic recovery, strengthening fiscal and external stability, accelerating structural reforms, improving the efficiency of development expenditure, and promoting resilient, inclusive and sustainable economic growth.

He said the beginning of FY2026-27 had provided encouraging economic signals. Consumer Price Index (CPI) inflation eased to 9.2 percent in July 2026, compared with 11.7 percent in May 2026. He said the moderation indicated that price pressures had begun to ease, while the year-on-year increase from 4.1 percent largely reflected the base effect and the pass-through of global food and energy prices.

The minister said workers’ remittances remained a major source of external-sector resilience, reaching USD 3.6 billion in July 2026, an increase of 13 percent from USD 3.2 billion in July 2025.

“This strong beginning to FY2026-27 follows record remittances of USD 41.6 billion during the previous fiscal year. The inflows not only strengthened Pakistan’s foreign exchange position but also directly supported millions of Pakistani households and reflected the continued contribution of overseas Pakistanis to the national economy,” he said.

He said Information and Communication Technology (ICT) exports continued to strengthen Pakistan’s external earning capacity, rising to USD 417 million in July 2026 and highlighting the growing potential of technology and digital services as an important source of export earnings.

Ahsan Iqbal said stronger fiscal discipline had also improved the overall fiscal position. The fiscal deficit narrowed to 2.6 percent of GDP in FY2025-26, compared with 5.4 percent in FY2024-25, marking the lowest fiscal deficit recorded in two decades, he added.

He said public investment continued to serve as an important engine of growth and employment. Projects approved during July 2026 are expected to generate approximately 7,851 direct and 14,053 indirect jobs across key sectors, reinforcing the government’s commitment to employment-oriented, inclusive and sustainable development.

The Minister said Pakistan had passed through a difficult period of economic adjustment and that the stability achieved over the past few years had been hard-earned.

“Through URAAN Pakistan, our focus is now to translate this stability into sustainable economic transformation, with exports as a key driver, leading to more jobs, better incomes, greater opportunities for our youth and an improved quality of life for the people of Pakistan,” he said.

He said the Ministry of Planning authorized Rs211.327 billion, equivalent to 21.1 percent, during July 2026 to ensure timely financing of priority development projects.

The minister said the Central Development Working Party (CDWP) during July FY2026-27 approved nine projects, three position papers and one concept clearance proposal, while nine projects were recommended to the Executive Committee of the National Economic Council (ECNEC).

He said three projects were deferred, while one project and one position paper were returned to their respective sponsors for further consideration.

He said a comprehensive review of CDWP projects led to the streamlining of non-essential project components, resulting in savings of Rs1.02 billion during July 2026 and ensuring that scarce public resources were redirected towards higher-impact development priorities.

Copyright Business Recorder, 2026