Overview
- Official data show Q1 FY2026 GDP up 3.71% with industry expanding 9.38% year on year, signaling a manufacturing-led recovery.
- The Finance Ministry’s December update projects continued momentum on the back of stronger large-scale manufacturing, improved governance and digitalisation.
- Finance Minister Muhammad Aurangzeb says growth will exceed 4% this fiscal year as inflation cools and market confidence improves.
- Prime Minister Shehbaz Sharif cites lower inflation, a swing to a current account surplus and reserves near $21 billion, alongside progress on privatisations including PIA and First Women Bank.
- Gallup surveys report rising public confidence for 2026—outpacing regional and global averages—while analysts flag risks from 2025 flood damage and missed IMF performance indicators.