Pakistan’s economy is showing signs of recovery in the first eight months of FY2025–26, with tax collection reaching Rs8.1 trillion during July–February, up from Rs7.3 trillion in the same period last year, Planning Minister Ahsan Iqbal said on Saturday.
Officials attributed the growth to better tax compliance, improved administration, and expanding economic activity.
Overseas Pakistanis contributed to economic stability, sending $23.2 billion in remittances during July–January FY2026, a rise of 11.3 percent from last year’s $20.9 billion.
The minister said Large-Scale Manufacturing (LSM) recorded 4.8 percent growth year-on-year for July–December FY2025–26, with 14 out of 22 sectors showing positive results, including automobiles 67.2 percent, non-metallic mineral products 10.5 percent, beverages 5.4 percent, wearing apparel 7.5 percent, food 0.6 percent, textiles 1.5 percent, and tobacco 8.7 percent.
On external trade, goods and services exports reached $24 billion, while imports rose to $44.4 billion, driven by stronger demand for intermediate and capital goods and tariff adjustments to improve competitiveness. Services exports grew 18.8 percent to $5.7 billion, supported by a 20 percent increase in ICT exports, while services imports rose 17.4 percent to $7.7 billion.
Addressing inflation, Iqbal said February 2026 inflation climbed to 7 percent, up from 1.5 percent last year, influenced by a low base effect and electricity tariff adjustments. Average inflation for July–February fell slightly to 5.5 percent, compared with 5.9 percent last year. Prices of essential food items declined, with eggs down 22.4 percent, chicken 20 percent, and potatoes 16 percent.
Iqbal warned that Middle East tensions and global energy market volatility could impact domestic inflation and urged citizens to adopt responsible consumption, such as limiting unnecessary travel and using fewer vehicles per household.
Development spending also advanced, with Rs585 billion authorised and Rs403 billion sanctioned during July–February FY2025–26. PSDP utilisation reached 36 percent of the Rs1 trillion allocation (Rs361 billion), up from 20 percent (Rs312.3 billion) last year.
The Central Development Working Party (CDWP) approved four projects and recommended five others to the Executive Committee of the National Economic Council (ECNEC). Approved projects are expected to generate approximately 18,366 direct jobs and 7,320 indirect jobs. Cost rationalisation measures saved Rs9.9 billion, while ongoing monitoring ensured project efficiency.
On the international front, work has started on a five-year roadmap for Pakistan–Kazakhstan economic cooperation following the Pakistan–Kazakhstan Strategic Partnership Joint Declaration. A virtual meeting with the Islamic Development Bank discussed the Member Country Partnership Strategy 2026–2030, and talks in Bangladesh focused on strengthening regional ties.
Iqbal concluded by urging collective national responsibility, stressing that citizens’ support and prudent consumption are key to maintaining economic stability and navigating global challenges.
The post Pakistan’s tax revenue hits Rs8.1 trillion as economy recovers appeared first on Profit by Pakistan Today.