Govt Expects Economy to Sustain Recovery in Early FY26

Pakistan’s economy is expected to sustain its recovery in early FY2026, supported by improved macroeconomic fundamentals and rising investor confidence. In its Monthly Economic Update & Outlook, the Finance Division said that Large-Scale Manufacturing (LSM) is likely to maintain momentum in June 2025, driven by increased private sector credit offtake and expanding production activity. It further said that rebound is expected to boost imports of raw materials and intermediate goods while supporting exports of value-added products. Strengthening domestic demand, a stable exchange rate, steady global commodity prices, and improved foreign demand are likely to enhance exports, remittances, and imports in July 2025, reinforcing external sector stability, it added.