ISLAMABAD — Federal Minister for Planning, Development, and Special Initiatives Prof. Ahsan Iqbal Chaudhary launched the Ministry of Planning’s Monthly Development Update – July 2026, declaring that Pakistan has successfully navigated away from default risks and is transitioning from economic stabilization toward export-led, sustainable growth.

Addressing a press briefing, the Minister outlined key macroeconomic indicators and strategic priorities under the vision of Prime Minister Muhammad Shehbaz Sharif and the national transformation framework, URAAN Pakistan.

Macroeconomic Performance & FY 2025–26 Highlights

Despite global geopolitical uncertainty, energy market disruptions, and volatile oil prices, Pakistan’s economy demonstrated broad-based recovery:

• 📈 GDP Growth: Improved to 3.7%, driven by growth in Agriculture (2.9%), Services (4.1%), and Industry (3.5%).
• 🏭 Manufacturing & Revenue: Large-Scale Manufacturing (LSM) expanded by 5.8%, while Federal Board of Revenue (FBR) collections reached Rs 13 trillion.
• 💳 Rating Upgrade: S&P Global Ratings upgraded Pakistan’s sovereign credit rating from B- to B, signaling renewed global investor confidence.
• 🌐 External Balance: Record remittances reached $41.6 billion, exports of goods and services rose to $40.9 billion, and the current account deficit was successfully contained at $139 million.
• 📉 Inflation Control: Contained at 7.1%, falling below original government targets.

Development & Infrastructure Momentum

Reviewing development portfolio performance, the Planning Commission announced major progress:

• 🏗️ CDWP & ECNEC: The Central Development Working Party (CDWP) approved 192 projects and referred 96 mega projects to ECNEC.
• 💼 Job Creation: Approved development projects are projected to generate 289,000 direct and 424,000 indirect jobs.
• 💰 Fiscal Efficiency: Project evaluations yielded Rs 12.6 billion in savings through rigorous oversight.

Strategic Priorities for FY 2026–27 & URAAN Pakistan

The government has set a target of 4% GDP growth for FY 2026–27, focusing on productivity, technology adoption, private investment, and protection of purchasing power.

Key Initiatives Include:

• 🤖 Future Technologies: Targeted investments in AI, cybersecurity, biotechnology, genomics, satellite technologies, big data, and digital skills.
• 🎓 Education Reforms: Advancing the Islamabad Smart City Governance Model, modernizing teacher training, and reforming higher education curricula.
• 🌐 Global Partnerships: Following the Minister’s recent U.S. visit, UIC expressed interest in establishing a campus in Pakistan, the U.S.–Pakistan Knowledge Corridor is being revived, and global platform Plug and Play plans local operations. Expanded partnerships with Türkiye, Uzbekistan, and Denmark are also underway.

“Economic stability is only the beginning. Pakistan’s next chapter is about transforming stability into sustainable growth, exports, innovation, and future-ready human capital,” emphasized Prof. Ahsan Iqbal, reaffirming that fuel price adjustments will remain transparently linked to international markets to maintain fiscal discipline.