Islamabad : Federal Minister for Planning, Development & Special Initiatives, Ahsan Iqbal, addressed the launch of the Monthly Development Update and the ceremony recognizing the month’s best-performing officers. Highlighting the resilience of Pakistan’s economy, he noted that despite the devastating floods of 2025, timely government interventions—including NDMA-led evacuations, coordinated relief operations, and proactive contingency planning—ensured continuity in critical sectors, safeguarded livelihoods, and reinforced the nation’s commitment to sustainable economic recovery.
Minister for Planning Ahsan Iqbal during the briefing said that inflation in the first two months of the fiscal year remained on a declining trajectory, with July at 4.1% and August at 3.0%, reflecting early price stability. Flood-related disruptions caused a temporary increase, pushing inflation to 5.6% in September and 6.2% in October. Overall, the July–October average inflation stood at 4.7%, significantly lower than 8.7% in the same period last year.
After two consecutive years of contraction, large-scale manufacturing has entered a recovery phase, boosting demand for raw materials and fuel, and revitalizing industrial activity. The Federal Board of Revenue recorded Rs. 3.8 trillion in tax collections for July–October, marking an 11.4% increase compared to the same period last year. Goods exports, after an initial increase of 0.7% in July–August, faced temporary setbacks due to flood-induced supply disruptions, resulting in a 4% decline for July–October. Export of services grew by 14.7% ($2.2 billion), with IT exports rising 20.5% ($1.1 billion). Imports increased to $23 billion, up 15.1%, reflecting industrial growth, trade liberalization, and higher demand for capital goods. Remittances from overseas Pakistanis reached $13.0 billion, a 9.3% increase over last year, signaling growing confidence in economic stability.
Development progress continued despite flood challenges. In the first four months of FY2026, Rs. 330.4 billion of PSDP allocations were approved, and Rs. 134.2 billion released, ensuring steady implementation within the Rs. 1 trillion development program. Recent project approvals are expected to create over 56,000 direct and 39,000 indirect jobs, while cost rationalization measures resulted in savings of Rs. 2.2 billion. Rigorous monitoring and evaluation of ongoing projects have strengthened transparency and accountability.
Reflecting on long-term development and regional cooperation, the Minister highlighted the China-Pakistan Economic Corridor (CPEC), noting that investments during the 2013–2018 period brought billions into the country, whereas previous mismanagement led to capital diversion abroad. Under CPEC Phase -II Pakistan is poised to open new avenues for growth across sectors with sustained international cooperation. He said that nearly 60% of the country’s population is under the age of 30 and proposed the allocation of 10,000 PhD scholarships in artificial intelligence, engineering, and emerging sciences at China’s leading universities over the next decade, to build a strong human resource base for knowledge-driven growth.
Minister Ahsan Iqbal concluded that the government remains firmly committed to economic recovery, infrastructure development, and human capital investment, ensuring a resilient and prosperous Pakistan for all its citizens.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
