ISLAMABAD: Pakistan’s foreign exchange reserves have reached a record $21.4 billion, while remittances, exports, foreign investment, industrial production and capital market activity have also shown growth, the Finance Ministry said Friday.
According to the ministry’s latest economic update, the current account deficit fell 70% year over year in August. During the first two months of fiscal year 2027, the cumulative current account deficit declined 36% compared with the same period a year earlier.
Large-scale manufacturing output increased 3% year over year, while production rose 9.5% month over month, the ministry said.
Corporate profits increased 15% during fiscal year 2026, while the registration of new companies rose 45% year over year, indicating increased business activity, according to the ministry.
Remittances from overseas Pakistanis also recorded strong growth. During the first two months of fiscal year 2027, remittances rose 17% to $7.3 billion.
Services exports increased 29%, while information technology exports grew 17%. Freelancers’ earnings also rose 42% year over year, contributing to growth in digital and technology-related exports.
Foreign direct investment increased 80% to $316 million, according to the Finance Ministry.
Cumulative remittances through the Roshan Digital Account also increased to $13.9 billion, reflecting continued use of formal financial channels by overseas Pakistanis to send money to the country.
The ministry said Pakistan’s Sustainable Panda Bond received international recognition through a Climate Bonds Award, describing it as an important development for the country’s sustainable financial products.
Capital market activity also showed signs of growth. The number of retail investors registered with InvestPak reached 12,800, the ministry said.
Five initial public offerings were completed during the first two months of fiscal year 2027, compared with 11 IPOs completed during fiscal year 2026.
The latest figures indicate improved external-sector stability, stronger industrial production, increased remittances and exports, higher foreign investment and greater activity in the capital market, the Finance Ministry said.