Pakistan’s Large-Scale Manufacturing Faces Sharp Slowdown as Floods Hit Industrial Output
Pakistan’s large-scale manufacturing sector witnessed a significant deceleration in August as floods disrupted industrial activity. The slowdown highlights growing economic vulnerabilities despite earlier signs of recovery in key industries like automobiles and cement.
Debt Burden, Weak Productivity and Climate Risks Weigh Heavily on Pakistan’s Economic Outlook
The State Bank of Pakistan’s latest report highlights how debt, low savings, weak productivity, and climate shocks are undermining economic stability. With a fragile growth outlook, the central bank urges structural reforms, financial inclusion, and human capital development to sustain long-term economic resilience.
Pakistan’s Economy Stabilizes as Growth Rebounds to 3%: SBP
Pakistan’s economy regained stability in FY25 as inflation fell to an eight-year low, external accounts improved, and growth rebounded to 3%. SBP projects further growth in FY26 but warns of climate risks and emphasizes structural reforms to sustain economic momentum.
Pakistan’s Per Capita Income Rises to Rs 42,000 Per Month Amid Economic Recovery
Pakistan’s per capita monthly income has reached Rs 42,000, supported by improved GDP growth and economic stability, as the government focuses on fiscal reforms and digital transformation to sustain inclusive growth.
Federal Government Urges Provinces to Accelerate IMF Reforms Ahead of Key Review Deadline
The federal government has pressed Pakistan’s provincial administrations to urgently resolve pending IMF-related commitments and fiscal targets to ensure smooth progress in the second review of the $7 billion Extended Fund Facility (EFF), as well as the $1.4 billion Resilience and Sustainability Facility (RSF), with key reforms hanging in the balance.
Pakistan’s GDP Expands 3.04% in FY2025 as Economy Reaches $407 Billion
Pakistan’s GDP growth accelerated to 3.04% in FY2025, with improved performance in agriculture, industry, and services. The economy’s total size has now reached $407 billion, driven by upward revisions in national accounts and stronger output across key sectors.
State Bank Keeps Policy Rate Steady at 11% as Growth Strengthens and Inflation Stabilizes
The State Bank of Pakistan has maintained its policy rate at 11% in the latest monetary policy decision, signaling confidence in economic recovery and inflation outlook. Despite rising trade deficits and external risks, the central bank projects continued economic growth into FY26, underpinned by private sector momentum and fiscal reforms.
KSE-100 Index Surges to Record High Following FY26 Budget Announcement
The KSE-100 index hit a new all-time high following the announcement of Pakistan’s FY26 federal budget. Strong investor sentiment, favorable tax measures, and growth-oriented targets fueled a market-wide rally.