ISLAMABAD: Pakistan recorded a mixed economic performance in September 2025, with remittances surging 11.3 percent year-on-year while foreign direct investment (FDI) dropped sharply by 55.5 percent, according to the *Monthly Economic Update and Outlook – October 2025* released by the Finance Division on Monday.
The report highlighted that total foreign investment fell 64.5 percent compared to September 2024. Meanwhile, remittances rose to $9.53 billion during July–September FY2026, up 8.4 percent year-on-year, driven mainly by inflows from Saudi Arabia and the UAE.
Inflation is expected to remain between 5–6 percent in October due to flood-related supply disruptions and temporary border closures. Preliminary assessments estimate agricultural losses at Rs. 430 billion, though recovery efforts are underway with increased agricultural credit and higher fertilizer offtake.
Large-Scale Manufacturing (LSM) grew 4.4 percent in July–August FY2026, with 12 sectors showing positive trends, while inflation rose to 5.6 percent in September from 3.0 percent in August.
On the fiscal side, net federal revenues surged 231 percent to Rs. 3.27 trillion, mainly due to higher non-tax receipts and improved FBR collections. Fiscal prudence led to a surplus of Rs. 1.5 trillion, compared to a deficit last year.
The current account posted a $110 million surplus in September, reversing earlier deficits. The Pakistan Stock Exchange also maintained momentum, with the KSE-100 Index closing at 165,493 points.
The report reaffirmed the government’s commitment to fiscal stability, structural reforms, and inclusive growth amid ongoing challenges.
