The Government of Pakistan reaffirmed its commitment to sustaining the current trajectory of macroeconomic reform, with Advisor to the Finance Minister Khurram Schehzad underscoring the centrality of economic stability in building a prosperous and sustainable national future. In a video message shared recently, Schehzad detailed the progress made through structural reforms, citing a range of improved indicators that reflect the government’s policy impact.
Highlighting macroeconomic resilience, Schehzad pointed out that headline inflation has fallen to its lowest level in three years, dropping sharply from 23.4% to 4.5% during the ongoing fiscal year. This decline is being interpreted as a sign of strengthening purchasing power and monetary stability. Food inflation followed a similar trend, easing by 0.6% year-on-year to reach 21%, while core inflation moderated to 9.6%, down from 18.9% the previous year.
One of the more notable developments is the rise in per capita income, which climbed by 10% over the previous fiscal period to reach $1,824. According to Schehzad, this growth reflects the gradual strengthening of household financial capacity and national economic productivity. At the same time, interest rates were significantly reduced, falling from 22% to 11% in fiscal year 2025, allowing for improved credit access and investment opportunities across sectors.
The advisor emphasized that this progress was made possible by targeted government policies, many of which were introduced in the recent federal budget. These include tax relief measures aimed at salaried individuals and corporations, signaling an attempt to ease burdens on income earners and boost business sentiment. Schehzad also highlighted special allocations for agriculture and livestock, aimed at increasing rural incomes and addressing persistent poverty challenges.
Furthering the government’s focus on inclusive development, Schehzad noted strategic efforts to support small and medium enterprises (SMEs), enhance digital finance access, and empower the youth through skill-building and job creation. Industrial expansion and export growth remain at the forefront of national priorities, supported by recently implemented tariff reforms.
On the environmental front, Schehzad stated that Pakistan had successfully secured climate finance agreements with multiple global partners, reinforcing the country’s commitment to sustainable development. The government has also embarked on right-sizing federal institutions, implementing energy reforms, and accelerating the privatization of financially draining state-owned enterprises.
Describing the agricultural sector as the economic backbone, Schehzad revealed that agricultural credit had increased by 16%, while credit to the private sector surged by 38% to Rs710 billion. These gains are expected to further catalyze rural development and sector-wide productivity.
The advisor also pointed to positive fiscal indicators, including a 26% year-on-year increase in tax collection by the Federal Board of Revenue (FBR) and the achievement of a primary surplus, suggesting progress in achieving fiscal discipline. Measures to reduce circular debt and cut electricity prices for both households and industries have contributed to greater macroeconomic confidence.
“Pakistan’s reform momentum is real and it’s just getting started,” Schehzad said, concluding that the country’s economic scorecard reflects the foundations of a transforming investment landscape and disciplined financial governance. His message underlines the government’s broader vision of inclusive growth, stability, and long-term resilience.