The economy maintains a stabilization, growth track despite floods: the ministry

• Exports increase by 10%, remittances rise by 7% in July -August.
• The LSM sector publishes 9% annually in July.
• CPI inflation is reduced to 3% in August compared to 9.6% last year.
  

ISLAMABAD: The country’s economy maintained the trajectory of stabilization and development during the first two months of current use, despite severe flood disorders, the Treasury said here on Tuesday.

The economy has shown stability supported by inflation mitigation, large -scale power (LSM) and improving fiscal discipline, according to “monthly financial information and perspective” for September 2025 issued by the Finance Division.

The industrial momentum was reinforced by the LSM sector, which publishes 9% on a year -long basis in July, led by textile products, cars and cement, he added.

Cement missions rose more than 20%, while cars production recorded sharp profits between vehicles.

Inflationary pressures were significantly facilitated, with the inflation of the Consumer Price Index (CPI) decreased to 3.0% in August compared to 9.6% in the previous year.

On a cumulative basis, inflation was 3.5% during July -August 26, from 10.4% in the same period last year.

Tax accounts reflected the durability, with the mobilization of revenue and the discipline of spending, contributing to the deficit at 0.2% of GDP and yielding a primary surplus of RS228.9 billions.

The Federal Revenue Council collection increased by 14.1% to 1.66 trillion Rs during the period.

The outdoor sector remained widely stable.

Exports increased by 10.2% to $ 5.3 billion, while remittances increased by 7% to $ 6.4 billion.

The currency reserves reached $ 19.8 billion by September 19, 2025, including $ 14.4 billion with Pakistan’s state bank.

The Pakistan Stock Exchange also maintained the Bullish Run, with the KSE-100 index closing at 148,617 points in August, reflecting investor confidence.

Looking forward, the report predicted a steady macroeconomic perspective, backed by industrial recovery, steady remittances and relaxation of global basic products.

However, he warned that flood-related disorders could create temporary pressure on food supplies and push inflation slightly higher, although it is expected to remain at 3.5-4.5% in September 2025.

Worldwide, Fitch’s assessment foresees a 2.4% increase in 2025, with the improvement of demand in Pakistan’s main export markets, such as the US, China and the eurozone, are expected to support the country’s external account.