The Federal Ministry of Finance, while releasing its monthly economic outlook report for September 2025, has said that Pakistan’s economy is moving forward on the path of recovery, and continued stability is being seen in economic activities. The report states that the staff-level agreement with the IMF is a major acknowledgement of the country’s improved economic performance.
According to the report, the recent floods severely affected the agricultural sector, causing an estimated loss of Rs 430 billion, but the industrial sector continued to grow during this period. A 4.4 percent increase in the production of major industries was recorded in July and August.
The outlook also said that the performance of the automobile, construction and cement industries was prominent. Domestic cement consumption increased by 15 percent and exports by 21 percent.
Regarding inflation, the report said that annual inflation was 5.6 percent during September 2025. Due to the floods, food prices increased partially, but the inflation rate is likely to remain between 5 and 6 percent in the coming months.
According to the Ministry of Finance, FBR’s tax collections increased by 12.5 percent and federal revenues recorded a 231 percent improvement from July to August, which ended the fiscal deficit and turned into a surplus of Rs 1,509 billion.
The report further says that the current account deficit was $594 million in July to September, while a surplus of $110 million was recorded in September alone. Exports increased by 6.5 percent to $ 7.9 billion, while imports increased by 8.3 percent to $ 15.4 billion.
Remittances increased by 8.4 percent to $9.5 billion, while foreign investment decreased by 34 percent to $569 million. Foreign exchange reserves have reached $19.9 billion.
According to the report, the policy rate remains at 11 percent. In September, 73,545 Pakistanis found employment abroad, while interest-free loans worth Rs322.6 million were distributed to 5,370 people under the Ehsaas Programme. Similarly, Rs14.63 billion was disbursed through BISP in July and August.
