Pakistan PSDP spending rises to 56.1%, economy shows broad-based recovery

Pakistan’s Public Sector Development Programme (PSDP) utilization rose to 56.1 percent, or PKR 469.8 billion, during July–April of fiscal year 2025–26, up from 40.9 percent in the same period last year, a federal minister said Wednesday.

Briefing on the country’s economic performance, Planning Minister Ahsan Iqbal said the Central Development Working Party (CDWP) reviewed 41 agenda items, approving 23 projects, one policy paper and four concept clearances, while referring three items to the Executive Committee of the National Economic Council and deferring 10 for further review.

He said approved projects are expected to generate about 3,197 direct and 7,956 indirect jobs.

The minister estimated Pakistan’s economic growth at 3.7 percent for FY2025–26, with agriculture projected to expand by 2.89 percent, industry by 3.51 percent, services by 4.09 percent and construction by 5.73 percent. He said the economy’s size has reached USD 452.1 billion, with per capita income at USD 1,901.

On the external front, exports of goods and services totaled USD 30.6 billion during July–March, while imports rose to USD 56.3 billion.

Iqbal said services exports grew 17 percent to USD 7.3 billion, outpacing a 10.1 percent rise in services imports. He added the current account remained in surplus for three consecutive months, supported by remittances and rising IT exports.

Large-scale manufacturing rose 6.5 percent during July–March, marking a recovery after two years of contraction, driven by improved credit flows, policy support and reform measures under the government’s economic program.

He said 15 of 22 industrial sectors posted growth, including automobiles, electrical equipment, tobacco, food products, beverages and apparel.

Federal Board of Revenue collections reached PKR 10.3 trillion during July–April, up 10.3 percent year on year due to improved enforcement and economic recovery.

Remittances rose 8.5 percent to USD 33.9 billion, reflecting continued inflows from overseas Pakistanis. However, the minister warned that geopolitical tensions in the Middle East could pose risks to future inflows, and said the government was taking steps to protect workers abroad and maintain stability in external accounts.