Finance Minister highlights 3.7% growth despite external pressures

ISLAMABAD: Pakistan’s economy demonstrated resilience during the outgoing fiscal year despite domestic and international challenges, Finance Minister Muhammad Aurangzeb said Thursday while presenting the National Economic Survey.

Speaking in Islamabad, Aurangzeb said the survey reflects the country’s economic performance over the entire fiscal year, which began amid uncertainty caused by monsoon-related disruptions and global economic volatility, including tariff measures imposed by the United States on several countries.

He said the government successfully navigated multiple crises and that the economy performed better than expected despite internal and external pressures. Pakistan recorded economic growth of 3.7%, slightly below the government’s target of more than 4%.

Aurangzeb said the growth rate would likely have exceeded 4% had it not been for the crisis in the Middle East. He added that Pakistan’s economy expanded to more than $452 billion, while per capita annual income increased from $1,751 to $1,901.

The finance minister noted that global uncertainty had affected economies worldwide but said Pakistan maintained positive economic momentum despite regional tensions.

He said the petroleum sector posted 5% growth, while the current account recorded a surplus of $72 million during the July-March period. The agricultural sector grew by 2.89%, with dairy and livestock accounting for about 60% of agricultural output.

Aurangzeb also highlighted gains in exports, saying sports goods exports have surpassed $3 billion and information technology exports are expected to reach $4.5 billion. He noted that footballs manufactured in Pakistan will be used at the FIFA World Cup.

The minister said reducing imports remains a government priority and added that foreign exchange reserves currently stand at $17.1 billion and are projected to reach $18 billion by the end of June.