ISLAMABAD: According to statements made on Saturday by Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, Pakistan’s exports of goods and services rose to USD 3.94 billion in July 2026, representing a significant jump from USD 3.48 billion in July 2025, which saw a 13.1 percent increase in July exports year-over-year.
July Exports Surge: Goods Exports Lead the Growth
These numbers were presented during the Monthly Development Update for August 2026, giving an initial glimpse into Pakistan’s economy for the next fiscal year.
Furthermore, there have been impressive developments in the external sector too as far as FY2026-27 is concerned. Exports of goods climbed 9.4% to $3.0 billion in July 2026 from $2.8 billion a year earlier in July 2025. In contrast, exports of goods and services jumped 13% to $3.9 billion from $3.5 billion in the corresponding month last year, according to the finance minister. The minister emphasized that the current 13.1% rise in exports in July this year was across all goods/services exports segments.
Iqbal stated that the growth had been driven primarily by increases in exports in major categories such as surgical goods, up 16.3%, food items, up 8.0%, leather products, up 7.8%, and textiles, up 3.9%.
These statistics indicate that the surge in exports witnessed in July at 13.1 pc is reflective of economic strength throughout multiple industries in the economy.
According to Iqbal, industrial revival had gained even more momentum with Large Scale Manufacturing (LSM) registering a 5% rise in FY2025-26 against a decline of 0.74% in FY2024-25. Iqbal observed that this was due to robust growth in 16 out of 22 LSM sectors. Automobiles recorded a rise of 57.8%, transport equipment saw a gain of 42.4%, electrical equipment witnessed a rise of 14.3%, tobacco rose by 12.6%, and food was up by 7%.
With the support of the above-mentioned positive performance, both fiscal and external accounts remained strong. The Federal Board of Revenue’s tax collection was up 8.4% to Rs 820.9 billion in July, according to the finance minister. In the external sector, the remittance inflow was up 13% to USD 3.63 billion in July. The current account deficit stood at USD 328 million in July as compared to USD 529 million in July last year.
According to Iqbal, the early signs of economic activity in the first months of FY2026-27 have been positive. The CPI inflation rate stood at 9.2%, declining from 11.7% in May 2026. This deceleration showed that price pressures were starting to ease, while the yearly increase of 4.1% was due to the base effect and the impact of international food and energy prices.
In his comments, the minister added that worker remittances have been a critical contributor to Pakistan’s external sector strength, registering an amount of $3.6 billion in July 2026, representing an increase of 13 percent compared to $3.2 billion in July 2025. “The robust start in FY2026-27 comes amid record-breaking worker remittances of $41.6 billion in the preceding fiscal year. Not only did the flows boost our foreign currency reserves, but they provided immediate relief to millions of Pakistani families as well,” he stated.
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According to Iqbal, ICT exports played an important role in improving the foreign earning capacity of Pakistan, which climbed up to USD 417 million in July 2026. The rise was consistent with the overall growth of 13.1 percent recorded by the total exports in July. The figures confirm that ICT exports have grown by 131 percent since July 2023, increasing from $177 million to $4
Commenting on the state of finances, Iqbal noted that greater adherence to fiscal discipline had positively impacted Pakistan’s fiscal performance, resulting in a reduction of the fiscal deficit to 2.6 percent of GDP in FY2025-26, down from 5.4 percent in FY2024-25. This was the smallest fiscal deficit registered in Pakistan
The Finance Minister emphasized the role of public investments as vital drivers of economic growth and job creation. According to figures revealed by the minister, projects approved in July 2026 are estimated to create 7,851 direct and 14,053 indirect jobs in various industries, reaffirming the government's determination towards job-led development.
Addressing media persons on Thursday, Iqbal said Pakistan went through a tough phase of economic adjustment, adding that achieving stability was a result of immense efforts.
"Our aim through URAAN Pakistan is to ensure that stability becomes the springboard for sustained economic transformation, which will be achieved through exports being the catalyst to provide employment, higher earnings, more job opportunities for our youth and overall improvement in people’s living standards in Pakistan," said Iqbal.
In the statement issued to the press on Friday, the minister stated that the Ministry of Planning approved Rs211.327 billion, or 21.1%, in July 2026 to ensure prompt financing for important developmental initiatives.
It was learned that CDWP approved nine projects, three position papers, and one concept clearance during July FY2026-27. Additionally, nine projects were forwarded to ECNEC. Three projects were deferred; meanwhile, one project and one position paper were sent back to their respective sponsors for reconsideration. According to officials at CDWP, the detailed analysis of ongoing CDWP projects has enabled the elimination of unnecessary components within such projects and saved Rs1.02 billion during July 2026.