Pakistan’s exports of goods and services increased to $3.94 billion in July 2026, marking a 13.1 percent growth compared with $3.48 billion recorded in the same month last year, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said on Saturday.
The minister shared the figures while presenting the Monthly Development Update for August 2026, highlighting improvements in exports, manufacturing, remittances, inflation and fiscal indicators at the beginning of fiscal year 2026-27.
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“The external sector also started FY2026-27 on an encouraging note. Goods exports increased by 9.4 percent to USD 3.0 billion in July 2026, compared with USD 2.8 billion in July 2025. However, total exports of goods and services rose by 13 percent to USD 3.9 billion from USD 3.5 billion during the same month a year earlier,” Ahsan Iqbal said.
The minister said growth in major export categories supported the overall performance. Surgical goods exports increased by 16.3 percent, food exports rose by 8 percent, leather goods grew by 7.8 percent, while textile exports recorded a 3.9 percent increase.
Manufacturing Recovery Supports Economic Growth
Ahsan Iqbal said Pakistan’s industrial recovery strengthened further during the previous fiscal year, with Large-Scale Manufacturing (LSM) expanding by 5 percent in FY2025-26.
He said the growth marked a major improvement compared with the previous year when LSM contracted by 0.74 percent.
The recovery remained broad-based, with 16 out of 22 industrial sectors posting positive growth. The strongest performance came from the automobile sector, which expanded by 57.8 percent.
Other sectors that recorded significant growth included transport equipment at 42.4 percent, electrical equipment at 14.3 percent, tobacco at 12.6 percent and food at 7 percent.
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The minister said fiscal and external indicators also showed improvement. Federal Board of Revenue tax collection increased by 8.4 percent to Rs820.9 billion in July 2026.
Workers’ remittances also remained a key support for Pakistan’s economy, rising by 13 percent to $3.63 billion in July 2026 compared with $3.2 billion in July 2025.
“This strong beginning to FY2026-27 follows record remittances of USD 41.6 billion during the previous fiscal year. The inflows not only strengthened Pakistan’s foreign exchange position but also directly supported millions of Pakistani households and reflected the continued contribution of overseas Pakistanis to the national economy,” he said.
ICT Exports, Lower Inflation and Development Spending
Ahsan Iqbal highlighted the growing role of technology exports, saying Information and Communication Technology (ICT) exports reached $417 million in July 2026.
He said the digital sector was becoming an increasingly important source of foreign exchange earnings and would remain central to Pakistan’s future economic strategy.
The minister also pointed towards easing inflation pressures. Consumer Price Index inflation declined to 9.2 percent in July 2026 from 11.7 percent in May 2026.
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He said the government would focus during FY2026-27 on sustaining economic recovery, strengthening fiscal and external stability, accelerating structural reforms and promoting inclusive economic growth.
The minister said the fiscal deficit narrowed to 2.6 percent of GDP in FY2025-26 from 5.4 percent in FY2024-25, describing it as the lowest fiscal deficit recorded in two decades.
He added that development projects approved in July 2026 were expected to create around 7,851 direct and 14,053 indirect jobs.
“Through URAAN Pakistan, our focus is now to translate this stability into sustainable economic transformation, with exports as a key driver, leading to more jobs, better incomes, greater opportunities for our youth and an improved quality of life for the people of Pakistan,” Ahsan Iqbal said.
The minister said the Ministry of Planning authorised Rs211.327 billion, equivalent to 21.1 percent, during July 2026 for priority development projects.
He added that the Central Development Working Party approved nine projects, three position papers and one concept clearance proposal during the month, while nine projects were recommended to ECNEC.
