ISLAMABAD: Pakistan’s economy has shown signs of stabilisation, with improved economic management, fiscal discipline and macroeconomic policies helping sustain growth despite the impact of the ongoing conflict in the Middle East, according to a recent World Bank report.
The report highlighted an improvement in Pakistan’s real Gross Domestic Product (GDP) growth, which rose to 3.7 per cent in fiscal year 2026, compared with 3.2 per cent in fiscal year 2025.
It attributed the improvement to the country’s economic strategy and measures aimed at strengthening fiscal management and maintaining macroeconomic stability.
According to the report, higher revenue collection and reduced government expenditure helped Pakistan achieve a primary fiscal surplus of 2.9 per cent of GDP in FY2026, marking a significant improvement in the country’s fiscal position.
Remittances from overseas Pakistanis also played a key role in rebuilding foreign exchange reserves, helping strengthen the country’s external financial position.
The economic improvements have also been recognised by international credit rating agencies S&P Global Ratings and Moody’s, which have upgraded Pakistan’s credit ratings, reflecting improved assessments of its economic and financial outlook.
These positive developments have helped restore Pakistan’s access to international debt markets. The country successfully issued a $3 billion Eurobond, marking a significant step towards re-entering global capital markets.
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