Pakistan economy update: Remittances rise 14%, inflation reaches 10.3%

Pakistan’s foreign remittances, exports and foreign direct investment recorded year-on-year growth during the first quarter of the ongoing fiscal year according to the Finance Ministry’s latest monthly economic outlook report.

Pakistan’s foreign remittances, exports and foreign direct investment recorded year-on-year growth during the first quarter of the ongoing fiscal year according to the Finance Ministry’s latest monthly economic outlook report. However, inflation and imports also increased during the period.

The report showed that remittances reached $10.9 billion in the first quarter of fiscal year 2026-27 marking a 14% increase compared with the same period last year. In September 2026 inflows rose 12.7% year-on-year to $3.6 billion.

Exports also showed improvement, increasing 7.7% to $8.5 billion during the first quarter. September exports climbed 15.5% year-on-year to $3 billion.

Meanwhile imports rose 14.1% to $17.8 billion during the three-month period. In September alone, imports increased 22.7% to $6.2 billion, according to the report.

Foreign direct investment (FDI) reached $719.7 million during the first quarter representing a 19.9% annual increase. In September, FDI stood at $219.5 million.

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan were recorded at $21.5 billion in October. On October 28, the rupee was valued at Rs278.6 against the US dollar.

The Federal Board of Revenue (FBR) collected Rs3,086.2 billion in taxes during the first quarter while September collections amounted to Rs1,363.8 billion, reflecting an 11.5% year-on-year increase.

Federal non-tax revenue reached Rs2,365.9 billion during the quarter. The report recorded a fiscal deficit of Rs1,197.9 billion alongside a primary budget surplus of Rs2,311.2 billion.

Agricultural lending increased 32.7% year-on-year to Rs540.5 billion during the first quarter. The policy rate stood at 12% on October 26.

Inflation remained a concern, reaching 10.2% during the first quarter and 10.3% in September, compared with 5.8% in September last year.

Large-scale manufacturing output grew by 1.85% during the quarter while its growth rate stood at 0.67% in August.

The Pakistan Stock Exchange index reached 165,736 points on October 28, up 3.52% from October last year. Market capitalisation stood at Rs18.33 trillion, equivalent to $66.22 billion, in October 2026.

The report also highlighted increased business activity, with 15,440 new companies registered during the first quarter, marking a 37.3% increase compared with the same period last year.

However inflation and imports also increased during the period.

The report showed that remittances reached $10.9 billion in the first quarter of fiscal year 2026-27, marking a 14% increase compared with the same period last year. In September 2026 inflows rose 12.7% year-on-year to $3.6 billion.

Exports also showed improvement, increasing 7.7% to $8.5 billion during the first quarter. September exports climbed 15.5% year-on-year to $3 billion.

Meanwhile imports rose 14.1% to $17.8 billion during the three-month period. In September alone imports increased 22.7% to $6.2 billion, according to the report.

Foreign direct investment (FDI) reached $719.7 million during the first quarter representing a 19.9% annual increase. In September, FDI stood at $219.5 million.

Pakistan’s foreign exchange reserves held by the State Bank of Pakistan were recorded at $21.5 billion in October. On October 28 the rupee was valued at Rs278.6 against the US dollar.

The Federal Board of Revenue (FBR) collected Rs3,086.2 billion in taxes during the first quarter while September collections amounted to Rs1,363.8 billion reflecting an 11.5% year-on-year increase.

Federal non-tax revenue reached Rs2,365.9 billion during the quarter. The report recorded a fiscal deficit of Rs1,197.9 billion alongside a primary budget surplus of Rs2,311.2 billion.

Agricultural lending increased 32.7% year-on-year to Rs540.5 billion during the first quarter. The policy rate stood at 12% on October 26.

Inflation remained a concern, reaching 10.2% during the first quarter and 10.3% in September compared with 5.8% in September last year.

Large-scale manufacturing output grew by 1.85% during the quarter while its growth rate stood at 0.67% in August.

The Pakistan Stock Exchange index reached 165,736 points on October 28 up 3.52% from October last year. Market capitalisation stood at Rs18.33 trillion equivalent to $66.22 billion in October 2026.

The report also highlighted increased business activity with 15,440 new companies registered during the first quarter marking a 37.3% increase compared with the same period last year.