Economy to 'grow by 4pc' in FY26, says finance minister

Finance Minister Muhammad Aurangzeb on Tuesday said the country’s economic growth will be about four per cent in the current fiscal year, which he termed a “significant improvement” compared to previous years, state-run Radio Pakistan reported.

The finance minister made the comments while addressing the European Union-Pakistan High-Level Business Forum in Islamabad.

According to Radio Pakistan, the minister elaborated that the country has been “consolidating gains in terms of macroeconomic indicators”. He said that Pakistan’s current surplus was a “little over $1 billion in March”.

On April 16, the State Bank of Pakistan announced that Pakistan recorded a surplus of $1,070 million in March compared to a surplus of $23m in February.

The minister also expressed “satisfaction over IT exports, the positive trajectory of value-added segments as well as an increase in remittances”.

The finance czar further stated that Pakistan’s foreign exchange reserves were expected to reach “$18bn by the end of June, providing an import cover of three months”.

Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan also addressed the forum and underscored that the “EU remains Pakistan’s largest export destination,” particularly with the GSP+ framework.

Khan stressed that the future of the EU-Pakistan partnership lay “beyond trade, focusing on investment, technological collaboration, and integration into global value chains”.

Earlier this month, the Asian Development Bank (ADB) upgraded Pakistan’s economic growth rate to 3.5pc for the current fiscal year.

According to data released by the National Accounts Committee (NAC) on April 2, Pakistan’s economy grew by 3.89pc in the October-December quarter of 2025-26, showing an increase from 2.18pc recorded in the same period last year.

PM Shehbaz meets EU officials

Separately, Prime Minister Shehbaz Sharif met senior officials of the EU as well as business representatives from European companies at the Prime Minister’s House, Prime Minister’s Office (PMO) said.

During the meeting, PM Shehbaz noted that the EU was Pakistan’s “largest trading partner and the destination for the highest volume of exports from Pakistan”.

The premier voiced optimism that the EU-Pakistan Business Forum would “encourage further enhancement of trade and investment ties between Pakistan and the EU,” assuring the EU delegation of the government’s continued support for “growth of trade and investment relations”.

The premier added that Pakistan remained “firm” in its resolve to work towards stabilising its economy, “despite regional challenges, including the recent spike in oil prices”.

Speaking about the situation in the Middle East, the prime minister recalled that he had held two phone calls with EU Council President Antonio Costa, where the two discussed “regional security situation as well as ways to further strengthen Pakistan-EU relations”.

The EU delegation lauded Pakistan for its “leading role” in peace efforts in the region. The delegation also noted the “enormous potential for further growth of B2B ties between the EU and Pakistan in various sectors, including energy, communications, IT, etc”.

“More than 600 B2B meetings are expected on the sidelines of the EU-Pakistan Business Forum,” PMO added.

The EU delegation was led by the Director (Asia Pacific) of the European Commission’s Directorate General of International Partnerships, Peteris Ustubs.

The Ambassador of the European Union to Pakistan, Raimundas Karoblis, was also present at the meeting.