Planning Minister Ahsan Iqbal says petroleum price adjustments are linked to global oil market movements and are needed to protect fiscal discipline. He also pointed to improved growth, remittances and manufacturing data.
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ISLAMABAD: Planning Minister Ahsan Iqbal has defended recent petroleum price adjustments, saying they are tied to movements in the international oil market and are necessary to preserve macroeconomic stability and fiscal discipline.
Speaking at a media briefing held for the launch of the Ministry of Planning’s Monthly Development Update for July, Iqbal said Pakistan had moved away from the risk of default and entered a phase of recovery and stability. He said the government’s next objective was to convert that stability into durable growth, higher investment and more jobs under the Uraan Pakistan framework.
He said the economy posted broad-based improvement in FY2025-26, with GDP growth rising from 3.2% to 3.7%. Agriculture grew by 2.9%, services by 4.1%, while the industrial sector recorded 3.5% growth.
Iqbal said inflation stayed at 7.1%, below the government’s 7.5% target, despite global price pressures. He added that workers’ remittances climbed 8.6% to $41.6 billion, while total exports of goods and services reached $40.9 billion. Services exports, he said, rose 18.7% from $8.5 billion to $10 billion, and the current account deficit was contained at $139 million.
Growth target for next fiscal year
The minister said the government has set a 4% GDP growth target for FY2026-27 and would seek expansion without repeating the fiscal and external imbalances of the past. He said future growth would need to come from productivity, exports, investment and innovation.
Iqbal said, “The next phase of economic policy is to convert macroeconomic stability into investment, jobs and improved living standards.” He also said the government would focus on protecting purchasing power, reducing poverty and creating employment opportunities, particularly for young people.
According to the figures shared by the minister, large-scale manufacturing grew 5.8% during July-May FY2025-26, compared with a contraction of 1.1% a year earlier. The automobile sector posted 58.8% growth, while electrical equipment, tobacco, food and textiles also recorded notable gains.
On the revenue side, he said Federal Board of Revenue collections increased from Rs11.7 trillion to Rs13 trillion, while the target for the next fiscal year has been set at more than Rs15.2 trillion.
Education and market oversight
Iqbal also announced the revival of the US-Pakistan Knowledge Corridor Programme and said the University of Illinois Chicago had shown interest in setting up a campus in Pakistan.
He said authorities would strictly enforce OGRA-notified prices and take action against profiteering and hoarding.
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