{"id":65374,"date":"2026-06-30T12:22:26","date_gmt":"2026-06-30T12:22:26","guid":{"rendered":"https:\/\/pakistanintheworld.pk\/live\/?p=65374"},"modified":"2026-06-30T12:22:26","modified_gmt":"2026-06-30T12:22:26","slug":"pakistans-development-update-june-2026-improving-macroeconomic-outlook-key-development-initiatives-strategic-priorities-for-the-upcoming-fiscal-year","status":"publish","type":"post","link":"https:\/\/pakistanintheworld.pk\/live\/pakistans-development-update-june-2026-improving-macroeconomic-outlook-key-development-initiatives-strategic-priorities-for-the-upcoming-fiscal-year\/","title":{"rendered":"Pakistan\u2019s Development Update June 2026 &#8211; Improving macroeconomic outlook, key development initiatives, strategic priorities for the upcoming fiscal year"},"content":{"rendered":"<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-65375\" src=\"https:\/\/pakistanintheworld.pk\/live\/wp-content\/uploads\/2026\/06\/Pakistan-Development-Update-June-2026.jpg\" alt=\"\" width=\"500\" height=\"301\" srcset=\"https:\/\/pakistanintheworld.pk\/live\/wp-content\/uploads\/2026\/06\/Pakistan-Development-Update-June-2026.jpg 500w, https:\/\/pakistanintheworld.pk\/live\/wp-content\/uploads\/2026\/06\/Pakistan-Development-Update-June-2026-300x181.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/>Islamabad, June 30, 2026: Federal Minister for Planning, Development &amp; Special Initiatives and Deputy Chairman of the Planning Commission, Ahsan Iqbal, on Tuesday unveiled the Ministry\u2019s Monthly Development Update for June 2026, highlighting Pakistan\u2019s improving macroeconomic outlook, key development initiatives, and the Government\u2019s strategic priorities for the upcoming fiscal year. The meeting was attended by Chief Economist Dr Imtiaz Ahmad and senior officials from the Planning Commission.<\/p>\n<p>Addressing representatives of the electronic, print and digital media, the Minister said Pakistan\u2019s economy maintained its stabilization momentum during FY2025\u201326 despite facing unprecedented challenges, including early-year floods, global trade tensions and escalating conflict in the Middle East. He said prudent economic management enabled the country to preserve macroeconomic stability despite significant external shocks.<\/p>\n<p>The Minister stated that GDP growth remained on track during the first nine months of FY2025\u201326. However, geopolitical tensions in the Middle East, rising international oil prices and supply chain disruptions affected economic activity, bringing the projected growth rate down to 3.7 percent from the expected level of above 4 percent. Nevertheless, he noted that the growth achieved during the year represents Pakistan\u2019s highest economic growth in the last four years.<\/p>\n<p>The Minister Ahsan Iqbal highlighted that agriculture, industry and services collectively strengthened the country&#8217;s economic foundation. Agriculture expanded by 2.9 percent, the services sector grew by 4.1 percent, while industrial growth remained positive at 3.5 percent. He further noted that Large-Scale Manufacturing (LSM) recorded a strong recovery, growing by 6.4 percent compared to a contraction of 1.5 percent last year.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"7weAqGkbC0\"><p><a href=\"https:\/\/pakistanintheworld.pk\/live\/planning-minister-reviews-progress-on-cpec-distribution-of-chinese-agri-machinery-to-provinces-directs-speedy-installation-of-solar-lighting-units-in-balochistan\/\">Planning Minister Reviews Progress on CPEC , Distribution of Chinese Agri Machinery to Provinces, Directs Speedy Installation of Solar Lighting Units in Balochistan<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Planning Minister Reviews Progress on CPEC , Distribution of Chinese Agri Machinery to Provinces, Directs Speedy Installation of Solar Lighting Units in Balochistan&#8221; &#8212; Pakistan In the World\" src=\"https:\/\/pakistanintheworld.pk\/live\/planning-minister-reviews-progress-on-cpec-distribution-of-chinese-agri-machinery-to-provinces-directs-speedy-installation-of-solar-lighting-units-in-balochistan\/embed\/#?secret=gz1yPlZ2no#?secret=7weAqGkbC0\" data-secret=\"7weAqGkbC0\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Sixteen out of twenty-two industrial sectors registered positive growth, led by automobiles, electrical equipment, food processing, beverages, non-metallic mineral products, tobacco and wearing apparel.<\/p>\n<p>Referring to inflation, the Minister acknowledged that international oil prices, higher freight costs and global supply disruptions created renewed inflationary pressures during April and May 2026. He emphasized that despite these external challenges, average inflation during July\u2013May remained manageable at 6.7 percent. He said the Government had strengthened its price monitoring mechanism through regular meetings of the National Price Monitoring Committee in coordination with provincial governments to ensure price stability and provide maximum relief to the public.<\/p>\n<p>Highlighting the resilience of Pakistan\u2019s external sector, the Minister said overseas Pakistanis continued to demonstrate confidence in the country\u2019s economic management. Workers\u2019 remittances increased by 9.2 percent to US$38.1 billion during July\u2013May FY2025\u201326, while May 2026 recorded the highest-ever monthly inflow of US$4.3 billion. Services exports grew by 17.4 percent, driven largely by the information technology sector, while the current account remained in surplus due to rising remittances and expanding IT exports.<\/p>\n<p>The Minister Ahsan Iqbal said improved fiscal management also reflected the Government\u2019s reform agenda. Federal Board of Revenue collections reached Rs.11.2 trillion during July\u2013May, registering a 9.7 percent increase over the previous year. He said stronger revenue collection, improved tax enforcement and prudent fiscal management had further strengthened Pakistan\u2019s economic fundamentals.<\/p>\n<p>Discussing the economic impact of Eid-ul-Azha, the Minister said the Planning Commission\u2019s assessment estimated economic activity worth approximately Rs.1.7 trillion during Eid-ul-Azha 2026, equivalent to around 1.4 percent of GDP. Livestock trade increased to 7.7 million animals, while economic activity expanded across livestock markets, retail trade, transportation, butchery services and the leather industry.<\/p>\n<p>The Minister informed the media that the National Economic Council had approved a 4.0 percent GDP growth target for FY2026\u201327, along with a National Development Outlay of Rs.3.675 trillion. The Federal Public Sector Development Programme (PSDP) has been allocated Rs.1 trillion, prioritizing infrastructure, social development, science and technology, Azad Jammu and Kashmir, Gilgit-Baltistan and other special areas. Provincial Annual Development Programmes collectively amount to Rs.2.224 trillion.<\/p>\n<p>He said development spending had accelerated significantly during the outgoing fiscal year, with PSDP utilization reaching 64.6 percent of the revised allocation by May 2026. The Central Development Working Party continued to fast-track priority projects, while recently approved schemes are expected to generate nearly 9,813 direct and over 44,000 indirect employment opportunities. He added that improved economic and financial appraisal of development projects resulted in savings of Rs.12.1 billion through better planning and greater project efficiency.<\/p>\n<p>The Minister described rapid population growth as one of Pakistan\u2019s most pressing development challenges and emphasized the importance of evidence-based policymaking. He said the recently launched National and Provincial Population Projections 2023\u20132050 would provide an important foundation for achieving the Sustainable Development Goals, implementing the Five-Year Plan and advancing the Government\u2019s UAAN Pakistan initiative.<\/p>\n<p>Prof. Ahsan Iqbal reiterated that women&#8217;s education, entrepreneurship, employment and financial inclusion remain central to Pakistan\u2019s long-term development strategy. He stressed that sustainable development cannot be achieved without the economic empowerment of women.<\/p>\n<p>Highlighting regional development, the Minister said Balochistan is emerging as a strategic hub for regional connectivity, trade, logistics, renewable energy, mining, fisheries and agriculture under Phase-II of the China-Pakistan Economic Corridor (CPEC). He added that Balochistan\u2019s development is essential for Pakistan\u2019s economic transformation and regional prosperity.<\/p>\n<p>The Minister emphasized that Pakistan must now treat exports with the same national importance that was once accorded to the country&#8217;s nuclear programme. Following successes in safeguarding national security and strengthening diplomatic engagement, he said, the country must now win the battle for economic prosperity through higher productivity, exports, industrial competitiveness and human development.<\/p>\n<p>He announced that the Government will work closely with provincial governments to declare the social sector a national development emergency, focusing particularly on child nutrition, healthcare, education and the elimination of Hepatitis-C within the next three to four years.<\/p>\n<p>Sharing updates on infrastructure development, Prof. Ahsan Iqbal announced that work will begin during the new fiscal year on the Karachi\u2013Hyderabad M-9 expansion, the Sukkur\u2013Hyderabad\u2013Karachi M-6 Motorway, and the Chaman\u2013Quetta\u2013Karachi Highway. He also confirmed that work on the Main Line-1 (ML-1) railway project under CPEC will commence from the Rohri section.<\/p>\n<p>The Minister further announced that the Government will launch the Karakoram Highway-II project to replace the approximately 100-kilometre stretch of the existing highway that will be affected by the construction of the Diamer-Bhasha Dam, ensuring uninterrupted trade connectivity between Pakistan and China.<\/p>\n<p>He also announced the establishment of a Quantum Valley in Islamabad to promote advanced technologies, innovation and a knowledge-based economy.<\/p>\n<p>Turning to higher education reforms, the Minister said that the Government had recently directed the Higher Education Commission (HEC) to conduct a comprehensive review of universities across Pakistan and redesign degree programmes and curricula according to future national and global requirements. He said universities would also undergo a seven-point performance audit to assess academic relevance, teaching quality and alignment with emerging labour market needs. The findings, he said, will guide comprehensive reforms in Pakistan\u2019s higher education sector.<\/p>\n<p>Concluding his remarks, Ahsan Iqbal reaffirmed the Government\u2019s commitment to maintaining economic stability, accelerating development, strengthening exports, investing in human capital and implementing structural reforms aimed at transforming Pakistan into a competitive, inclusive and prosperous economy.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"EBRDqSKkvf\"><p><a href=\"https:\/\/pakistanintheworld.pk\/live\/pakistan-in-the-world-march-april-2026\/\">Pakistan in the World \u2013 March \/ April 2026<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Pakistan in the World \u2013 March \/ April 2026&#8221; &#8212; Pakistan In the World\" src=\"https:\/\/pakistanintheworld.pk\/live\/pakistan-in-the-world-march-april-2026\/embed\/#?secret=hpeM8PBtD6#?secret=EBRDqSKkvf\" data-secret=\"EBRDqSKkvf\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Islamabad, June 30, 2026: Federal Minister for Planning, Development &amp; Special Initiatives and Deputy Chairman of the Planning Commission, Ahsan Iqbal, on Tuesday unveiled the Ministry\u2019s Monthly Development Update for June 2026, highlighting Pakistan\u2019s improving macroeconomic outlook, key development initiatives, and the Government\u2019s strategic priorities for the upcoming fiscal year. The meeting was attended by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":65375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[91],"tags":[7924,1438,7211,2573,48,4018,7699],"_links":{"self":[{"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/posts\/65374"}],"collection":[{"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/comments?post=65374"}],"version-history":[{"count":2,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/posts\/65374\/revisions"}],"predecessor-version":[{"id":65377,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/posts\/65374\/revisions\/65377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/media\/65375"}],"wp:attachment":[{"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/media?parent=65374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/categories?post=65374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistanintheworld.pk\/live\/wp-json\/wp\/v2\/tags?post=65374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}