The trade deal between Pakistan and US is set to boost exports and will open new opportunities to local firms, said the Ministry of Finance. The Monthly Economic Update and Outlook released on Thursday stated that the stronger fiscal and external position made it possible for Pakistan to enter FY2026 with firm macroeconomic indicators and stronger growth prospects.
Since April 2025, Large-Scale Manufacturing (LSM) has been steadily recovering, and the growth is aided by the automotive output and fertilizers. The investor confidence is further expected to rise by government-supported reforms, business-friendly investment environment and reduction in inflation and monetary policies.
The report further indicated that favorable world conditions, high demand by international partners, and the US trade deal will increase Pakistan export potential. In the meantime, employment remittances still soften the pressure of trade deficits even after tariff-adjusted imports.
Another resilient sector was agriculture: credit disbursement increased by 16.3 percent to Rs. 2,577.3 billion in FY2025, and agricultural imported machinery increased by 123.9 percent in July FY2026. In addition, there was an increment in Urea offtake (2 percent) and a minor decline in DAP.
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In July FY2026, the current account deficit narrowed to $254 million versus $348 million a year earlier. Exports of goods increased by 16.2 percent to $ 2.7 billion as imports increased by 11.8 percent to $ 5.4 billion. Foreign job registrations also increased 23.9 percent, which is an indication of a high remittance inflow.
Based on the report, it has been concluded that the forward momentum of growth will continue to be driven by ongoing reforms and the Trade Deal Pakistan, US Boost Exports partnership.
