Pakistan’s economy is gaining momentum, driven by a broad-based industrial rebound, resilient agriculture, and prudent fiscal management that delivered a surplus in the first quarter of FY2026, according to the Federal Ministry of Finance’s Monthly Economic Update and Outlook (December 2025) .

The GDP growth hits 3.71%, led by industry surge and in the first quarter of FY2025-26, GDP expanded by 3.71%, fueled by agriculture’s steady 2.89% growth, a strong 9.38% rise in industry, and 2.35% in services, the report said.

High-frequency indicators reflect this upward trend, with workers’ remittances climbing and foreign exchange reserves reaching their highest level since March 2022 — $21.0 billion as of December 19, including $15.9 billion held by the State Bank of Pakistan (SBP).

Industry roars back and LSM up 5.02%, now Large-Scale Manufacturing (LSM) grew 5.02% in Jul-Oct FY2026, with 16 sectors in positive territory – including textiles, automobiles, cement, food, and electrical equipment.

October 2025 saw LSM surge 8.3% year-on-year and 3.7% month-on-month.

Source: Aaj TV