Pakistan’s Economy Expected to Recover in FY27, Finance Ministry Says

Pakistan’s Finance Ministry expects economic activity to strengthen during the 2026–27 fiscal year (FY27), with recovery spreading across agriculture, manufacturing and private-sector lending.

The ministry said recent indicators show improving industrial activity, vehicle sales, cement dispatches and agricultural performance. Strong remittances and growth in IT exports are also supporting the economy.

High Oil Prices Remain a Concern

The ministry warned that high international oil prices remain a major risk because they can increase import costs, raise production expenses and reduce household purchasing power.

Inflation is also expected to remain elevated in the near term, with the ministry projecting a rate of 10–11% for September 2026.

The government says it will continue economic reforms and targeted support measures while working to maintain financial stability and encourage sustainable growth.