ISLAMABAD — The Ministry of Finance has released its monthly economic outlook report, showing that remittances reached $10.9 billion in the first quarter of the current fiscal year, with growth in exports, foreign investment and agricultural lending, even as inflation remained above 10 percent and the fiscal account slipped into a deficit.
Remittances
Workers’ remittances rose 14 percent year-on-year in July–September (Q1 FY2026-27). In September 2026 alone, remittances stood at $3.6 billion, up 12.7 percent from a year earlier.
Trade
Exports totaled $8.5 billion in the first quarter, a 7.7 percent annual increase. In September, exports climbed 15.5 percent to $3 billion.
Imports grew faster, rising 14.1 percent to $17.8 billion over the quarter. September imports jumped 22.7 percent year-on-year to $6.2 billion.
Foreign Investment and Reserves
Foreign direct investment (FDI) reached $719.7 million in the first quarter, up 19.9 percent from the same period last year. In September, FDI came in at $219.5 million.
The State Bank of Pakistan’s foreign exchange reserves stood at $21.5 billion in October 2026. On October 28, the rupee was trading at 278.6 against the US dollar.
Revenue and Fiscal Position
The Federal Board of Revenue (FBR) collected Rs3,086.2 billion in taxes during the first quarter. September collections totaled Rs1,363.8 billion, an 11.5 percent increase year-on-year. Federal non-tax revenue for the quarter was Rs2,365.9 billion.
The report shows the government recorded a fiscal deficit of Rs1,197.9 billion in the first quarter rather than a surplus. The primary balance, however, showed a surplus of Rs2,311.2 billion.
Inflation and Interest Rate
Inflation averaged 10.2 percent in the first quarter of FY2026-27. In September 2026, it reached 10.3 percent, compared with 5.8 percent in September last year. The policy rate stood at 12 percent as of October 26, 2026.
Industry and Agriculture
Large-scale manufacturing output grew 1.85 percent over the first quarter, though growth in August 2026 was a modest 0.67 percent.
Agricultural lending reached Rs540.5 billion in the quarter, up 32.7 percent from the previous year.
Capital Markets and Business Activity
On October 28, the stock exchange index stood at 165,736 points, up 3.52 percent from October last year. Market capitalization in October 2026 was recorded at Rs18.33 trillion, or about $66.22 billion.
New company registrations totaled 15,440 in the first quarter, a 37.3 percent rise compared with the same period last year.