Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal presented the Monthly Development Update for February 2026, highlighting that Pakistan’s economy has demonstrated notable stabilization and is steadily moving on a recovery path during the 8-month journey of FY2025–26. He stated that the positive trends reflect the impact of prudent and well-coordinated macroeconomic management aimed at restoring economic stability and sustaining growth.
The Minister noted that price stability remained a key priority of the government, with regular meetings of the National Price Monitoring Committee ensuring a stable supply of essential commodities across the country. Average inflation eased to 5.5% during Jul–Feb FY2025–26 compared to 5.9% during the same period last year, while February 2026 inflation stood at 7.0%. Prices of several essential food items declined significantly, including eggs by 22.4%, chicken by 20.0%, and potatoes by 16%. However, he cautioned that tensions in the Middle East and developments in global energy markets remain potential risks for domestic inflation.
Highlighting the broader regional context, Ahsan Iqbal said that the region is currently facing a major oil crisis which is affecting not only developed economies but also developing countries. He noted that the coming months will make it clear how much oil prices may rise in the near future. The Minister urged citizens to adopt responsible consumption practices, advising that unnecessary travel should be avoided and that families should prefer using a single vehicle instead of two or three wherever possible.
The Minister further shared that the Large-Scale Manufacturing (LSM) sector exhibited a sustained and broad-based recovery during Jul–Dec FY2025–26, recording 4.8% year-on-year growth, marking a sharp turnaround from last year.
During this period, 14 out of 22 sectors recorded positive growth, including Automobiles (67.2%), Non-Metallic Mineral Products (10.5%), Beverages (5.4%), Wearing Apparel (7.5%), Food (0.6%), Textile (1.5%), and Tobacco (8.7%).
On the fiscal front, he highlighted that tax collections reached Rs 8.1 trillion during Jul–Feb FY2025–26, compared to Rs 7.3 trillion during the same period last year, reflecting improved compliance, effective tax administration and expanding economic activity.
Overseas Pakistanis continued to demonstrate confidence in the national economy, as remittances increased by 11.3% to $23.2 billion during Jul–Jan FY2026, compared to $20.9 billion during the same period last year.
Discussing the external sector, the Minister stated that exports of goods and services reached US$24 billion during Jul–Jan FY2025–26, while imports increased to US$44.4 billion. He explained that the rise in imports was driven by stronger demand for intermediate and capital goods, along with import tariff rationalization aimed at reducing trade distortions and enhancing competitiveness.
Services exports also recorded strong growth during July–Jan FY2025–26, increasing by 18.8 percent to US$5.7 billion, largely driven by the expansion of ICT exports to 20.0 percent. Meanwhile, services imports increased by 17.4 percent to US$7.7 billion, due to the expansion of remote digital services, financial and transport services, and increased international financial and insurance services.
Providing an update on development spending, Ahsan Iqbal stated that during the 8 months (Jul–Feb) of the current fiscal year, Rs. 585 billion were authorized and Rs. 403 billion sanctioned, reflecting steady progress in the execution of development projects. PSDP utilization during Jul–Feb FY2025–26 reached 36% of the total allocation of Rs. 1 trillion (Rs. 361 billion) compared to 20% (Rs. 312.3 billion) during the same period last year, indicating a significant increase in development activities.
On the planning side, the Central Development Working Party (CDWP) approved 04 projects (including position papers) and recommended 05 projects (including position papers) to the Executive Committee of the National Economic Council (ECNEC), demonstrating the government’s commitment to accelerating key development initiatives.
The Minister noted that the recently approved projects are expected to generate around 18,366 direct jobs and 7,320 indirect jobs across different sectors as development activities expand.
He also highlighted that during July–Jan FY2025–26, the government’s focus on cost rationalization in development projects resulted in savings of Rs. 9.9 billion, reflecting a prudent approach to planning and improved project efficiency. In January 2026, 16 projects were monitored and 05 projects were evaluated to ensure efficient implementation and the achievement of targeted development outcomes.
Sharing updates on international engagements, the Minister stated that following the Pakistan–Kazakhstan Strategic Partnership Joint Declaration of February 4, 2026, work has been initiated on a Five-Year Roadmap to enhance economic cooperation between the two countries. A Joint Working Group was constituted on February 23, 2026, and its first meeting was held on February 24, 2026 to identify priority areas for trade and economic collaboration.
He further informed that a virtual meeting with the Islamic Development Bank (IsDB) Group was held on February 16, 2026, to discuss preparation of the Member Country Partnership Strategy (MCPS) 2026–2030, aligned with Uraan Pakistan and Pakistan’s development priorities.
Additionally, on February 17, 2026, a meeting held in Dhaka with the Prime Minister of Bangladesh focused on strengthening Pakistan-Bangladesh relations and enhancing regional cooperation.
Concluding his briefing, Ahsan Iqbal emphasized that strengthening Pakistan’s economy requires collective national responsibility. He urged every Pakistani to play their role in supporting economic stability so that the nation can successfully overcome global economic challenges and emerge stronger from the current crisis
