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Pakistan Economic Survey Shows Growth but Poverty Hits 28.9%

Economic stabilisation has not translated into shared prosperity.

Overview

  • The Pakistan Economic Survey, released Thursday, reported GDP expanded 3.7% in FY2025‑26 and the government recorded a primary fiscal surplus and stronger foreign‑exchange reserves.
  • The survey found poverty rose to about 28.9% and the Gini income‑inequality index widened to 32.7, reversing years of progress and leaving rural households particularly worse off.
  • Jobs lagged behind growth: unemployment climbed to 7.1% with 5.9 million people out of work even as labour force participation rose and employment grew in services and construction.
  • Sector data show uneven recovery: agriculture grew 2.89% and livestock 3.75% while large‑scale manufacturing (LSM) rose about 6.1%, but key export sectors and input industries such as textiles, machinery, and steel remain weak.
  • External accounts were mixed: remittances and services exports supported a small July–March current‑account surplus, but merchandise exports fell, the trade deficit widened, and policymakers say structural reforms are needed to turn headline gains into jobs and higher living standards.