Pakistan’s economy is projected to maintain its recovery momentum into the early months of the 2025-26 fiscal year, according to the Finance Division’s Monthly Economic Update & Outlook. The report highlights a steady improvement in macroeconomic indicators and a rise in investor confidence as key drivers of this upward trend.
Large-scale manufacturing (LSM) is expected to remain robust, particularly through June 2025, thanks to growing private sector credit utilization and increasing industrial output. This growth in manufacturing is likely to translate into a higher demand for raw materials and intermediate goods, boosting imports while also enabling stronger performance in the export of value-added products.
The Finance Division also anticipates that domestic demand will continue to strengthen, supported by a stable exchange rate and consistent global commodity prices. In July 2025, these factors, coupled with improved international demand, are expected to contribute positively to exports, remittances, and controlled imports—helping maintain external sector stability.
This optimistic outlook reflects the government’s ongoing efforts to stabilize the economy and create an environment conducive to sustainable growth.
