Islamabad: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal addressed the launch of the Monthly Development Update and a ceremony honouring the months best-performing officers. He said that despite the devastating 2025 floods, timely government interventions³including NDMA-led evacuations, coordinated relief efforts and proactive contingency planning³ensured continuity in critical sectors, protected livelihoods and strengthened the countrys trajectory towards sustainable economic recovery.
The minister said inflation in the first two months of the fiscal year followed a declining trend, with July recorded at 4.1% and August at 3.0%, indicating early price stability. Flood-related disruptions caused a temporary rise, pushing inflation to 5.6% in September and 6.2% in October. The average inflation for July±October stood at 4.7%, considerably lower than 8.7% during the same period last year.
After two years of contraction, large-scale manufacturing has entered a recovery phase, increasing the demand for raw materials and fuel and revitalizing industrial activity. The Federal Board of Revenue collected Rs. 3.8 trillion during July±October, an 11.4% rise compared to last year. Goods exports, which initially grew by 0.7% in July±August, declined by 4% in July±October due to flood-induced supply disruptions. Services exports increased by 14.7% to $2.2 billion, with IT exports rising by 20.5% to $1.1 billion. Imports climbed to $23 billion³a 15.1% increase³reflecting industrial recovery, trade liberalization and rising demand for capital goods. Remittances from overseas Pakistanis reached $13.0 billion, up 9.3%, signalling renewed confidence in the economy.
Despite flood challenges, development work advanced steadily. In the first four months of FY2026, Rs. 330.4 billion worth of PSDP allocations were approved and Rs. 134.2 billion released under the Rs. 1 trillion development programme, ensuring consistent project execution. Recently approved projects are expected to generate over 56,000 direct and 39,000 indirect jobs, while cost-rationalization efforts saved Rs. 2.2 billion. Strengthened monitoring and evaluation mechanisms have enhanced transparency and accountability.
Discussing long-term development and regional cooperation, the minister highlighted the China-Pakistan Economic Corridor (CPEC). He noted that investments during 2013±2018 brought billions of dollars into Pakistan, while previous mismanagement had diverted capital abroad. Under CPEC Phase-II, Pakistan is set to unlock new growth avenues across multiple sectors. With nearly 60% of the population below 30, he proposed awarding 10,000 PhD scholarships in artificial intelligence, engineering and emerging sciences at leading Chinese universities over the next decade to build a strong knowledge-driven human resource base.
Ahsan Iqbal reaffirmed the governments commitment to economic revival, infrastructure expansion and human capital development, saying Pakistan is firmly on the path toward a resilient and prosperous future.