Stronger export-oriented economy key to achieving economic strength: Ahsan
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal has said that continuity of reforms, political stability, productive investment, and a stronger export-oriented economy are key to achieving economic strength.
Presenting the September 2026 Monthly Development Update (MDU) here on Monday, the minister revealed that his ministry has officially requested the Prime Minister (PM) for inclusion of the Planning Ministry as part of the team, along with the Ministry of Finance, for holding negotiations with the IMF, as the Planning Ministry is one of the key stakeholders concerned with the economy, which includes growth, inflation, poverty and other matters.
The Federal Minister said that falling oil prices would help ease inflationary pressures, adding that the recent inflationary challenge was linked significantly to rising international oil prices and was being faced by countries across the world.
He said that Pakistan’s economic indicators had improved considerably over the past four years and the country had achieved successes at the international and diplomatic levels. He stressed that Pakistan now needed to improve its economic indicators further and sustain the momentum of economic recovery.
Highlighting the positive trajectory of the country’s economic indicators, he said Pakistan’s manufacturing sector is gaining momentum, with Large-Scale Manufacturing growth reaching 3.0 percent in July FY2026-27 and expanding by 9.5 percent compared with June 2026. He said strong growth was recorded in automobiles at 57.01 percent, transport equipment at 40.22 percent, tobacco at 35.82 percent, wearing apparel at 22.03 percent, electrical equipment at 7.88 percent and non-metallic mineral products at 4.25 percent.
Ahsan Iqbal said the performance reflected strengthening of the industrial base while also highlighting the need to revive traditional export-oriented sectors. He said the government is taking targeted measures to address price pressures by tackling unjustified wholesale-retail price gaps and strengthening oversight of essential commodities.
Talking about the prevailing political situation of the country, Iqbal said that political parties needed to ensure that their actions did not serve the interests of external adversaries. He said that Pakistan’s political disputes should be resolved through constitutional and democratic institutions, adding that the Pakistan Muslim League-Nawaz had pursued its political and legal cases in Parliament and the courts and had never conspired against Pakistan.
Iqbal said that no one would be allowed to play with Pakistan’s future and emphasised that instability and disorder could undermine the country’s economic development process. He said that a small group within the Pakistan Tehreek-e-Insaf wanted to create disorder on the streets, adding that attempts to turn Islamabad into a battleground would not serve the national interest. He further said that the cases against the former PTI chairman were corruption-related rather than political, and called upon PTI members and workers to seek answers regarding the corruption allegations from their leadership.
Speaking about inflation, Ahsan Iqbal said that price stability remained a key priority because it directly affected household budgets and purchasing power. He said that the government was focused on addressing inflationary pressures, particularly in essential goods and services, alongside efforts to achieve higher GDP growth and generate employment.
He noted that average CPI inflation during July-August 2026 stood at 10.2 percent compared with 3.6 percent during the corresponding period last year. Monthly inflation increased to 11.1 percent in August 2026, compared with 9.2 percent in July 2026 and 3.1 percent in August 2025.
Turning to Pakistan’s external sector, Ahsan Iqbal said that the country had entered FY2026-27 with greater confidence in its external position. Goods exports reached USD 5.4 billion during July-August FY2026-27, while exports of goods and services together rose to USD 7.3 billion, registering 9.2 percent growth compared with USD 6.6 billion during the corresponding period last year. He said the encouraging aspect of export performance was its broader composition. Food exports grew by 9.3 percent, petroleum products by 42 percent, leather goods by 12.8 percent, textiles by 3 percent and surgical goods by 10.2 percent. Iqbal said that services exports had expanded by 29 percent, with ICT and digital services becoming increasingly important components of Pakistan’s foreign-exchange earning capacity. He said ICT exports reached USD811 million during July-August FY2026-27 compared with USD691 million during the corresponding period last year, demonstrating the gradual expansion of Pakistan’s exports beyond conventional sectors.
He said that despite stronger import demand, the current account deficit during July-August FY2026-27 was recorded at USD543 million compared with USD853 million a year earlier, representing an improvement of USD310 million or 36 percent.
Ahsan Iqbal said remittances remained an important pillar of Pakistan’s external stability, with remittances reaching USD7.3 billion during the first two months of the current fiscal year compared with USD6.4 billion during the same period last year.
The Federal Minister said that foreign investment momentum had also strengthened at the start of FY2026-27 as net foreign direct investment rose 77 percent to USD316 million in August 2026 from USD179 million in July, taking net FDI during July-August FY2026-27 to USD494 million, 24 percent higher than USD399 million during the corresponding period last year.
He said Pakistan had also secured strong interest from international investors, with the issuance of a record USD3 billion international bond attracting demand approaching USD6 billion. The minister said consumer confidence was also beginning to recover, with the IPSOS Consumer Confidence Index rising to 33.6 in the third quarter of 2026 from 33.2 in the second quarter. He said expectations for economic improvement had nearly doubled over two years, rising to 23 percent from 12 percent.
Copyright Business Recorder, 2026