Pakistan’s Ministry of Finance has reported improving economic indicators and a 19 per cent increase in overseas employment registrations, according to its latest Monthly Economic Update and Outlook report.

The report said 75,663 Pakistani workers registered for overseas employment in January 2026, compared to 63,559 during the same month last year.

The ministry noted signs of macroeconomic stabilisation, easing inflationary pressures and improved growth prospects for the national economy.

Inflation is expected to remain between six and seven per cent during the current month, while it stood at 5.8 per cent in January 2026.

The government also provided a Rs38 billion Ramazan relief package to support consumers amid improving price trends.

However, the report warned that geopolitical uncertainty and fluctuations in global commodity prices remain key risks.

External sector and investment trends

According to the outlook, workers’ remittances increased by 11.3 per cent during the first seven months of the fiscal year, reaching $23.2 billion between July and January.

Exports declined by 5.5 per cent to $8.3 billion during the same period, while imports rose by 9.8 per cent, pushing the current account deficit beyond $1 billion.

Foreign direct investment fell by 41 per cent to $980 million, though the Pakistani rupee remained relatively stable and foreign exchange reserves of the State Bank of Pakistan increased from $11.2 billion to $16.2 billion.

Industry, revenue and market performance

Large-scale manufacturing recorded a 4.8 per cent improvement over six months, supported by easier access to low-cost financing. The policy rate declined to 10.5 per cent, while credit to the private sector remained limited at Rs638 billion.

Tax revenue grew by 10.5 per cent to Rs7.176 trillion, whereas non-tax revenue declined by 6.8 percent to Rs3.847 trillion.

The Pakistan Stock Exchange showed strong performance, gaining 48 per cent to reach 168,893 points, while new company registrations rose 26 per cent, with 25,554 firms registered during the period, the report added.