Page 88 - CMA Journal (Jul-Aug 2026)

O T H E R F E A T U R E S

Economy News

LSM Growth, Exports and Remittances year. Sales tax receipts exceeded expectations at PKR 718
Strengthen Pakistan’s Economic Outlook billion, marking a 14% increase year-on-year. Customs
duty was slightly below target at PKR 198 billion, while
Pakistan’s Large-Scale Manufacturing (LSM) sector grew federal excise duty marginally exceeded its target.
by 5.0% in FY2025-26, bouncing back from a 0.7% Refunds issued rose to PKR 155 billion from PKR 124
contraction the previous year, with 16 of 22 sectors billion. Overall, the government has set a revenue target
showing positive growth. Key contributors included of PKR 15.264 trillion for FY2027, up from over PKR 13
automobiles [57.8%], transport equipment [42.4%], and trillion in FY26.
electrical equipment [14.3%]. The external sector also
performed well, with goods exports rising 9.4% to US$3.0 Petrol Price Rises by PKR 0.77, HSD Price
billion in July 2026 and total exports of goods and Falls by PKR 1.03 per Litre
services up 13% to US$3.9 billion. ICT exports were
notable at US$417 million. Additionally, Workers’ The government has increased the petrol price by PKR
Remittances grew 13% to US$3.6 billion, building on 0.77 per litre and reduced the price of high-speed diesel
record remittances of US$41.6 billion in FY2026. These (HSD) by PKR 1.03 per litre, with the revised rates e ective
trends indicate resilient economic activity and from September 1, 2026. Petrol will now cost PKR 342.79
external-sector strength in Pakistan. per litre, while HSD will be priced at PKR 370.41 per litre.
The government continues to levy PKR 114 per litre in
Foreign Investors Repatriate US$261 taxes and duties on petrol and PKR 100 per litre on diesel.
Million in Pro ts & Dividends in July The latest adjustment follows uctuations in
2026 international oil prices and comes after the government
shifted to daily fuel price adjustments in July 2026 with
Foreign investors repatriated $261.4 million in pro ts and OGRA tasked with determining prices based on
dividends in July 2026, a 72.7% increase from $151.4 international market trends. HSD prices have declined
million in June but 11.4% lower than $295 million in July substantially from their peak of PKR 520.35 per litre
2025. Foreign Direct Investment (FDI) constituted $255 recorded in April, while petrol prices have fallen from a
million of this, marking an 81.4% rise month-on-month peak of PKR 458.41 per litre during the same period.
but a 13.5% decrease year-on-year. Foreign Portfolio
Investment (FPI) out ows were $6.3 million, down 41.7% Pakistan Seeks to Expand US$30 Billion
from June but signi cantly up from $0.2 million a year Goods Export Base to Sustain Economic
ago. The power sector led out ows at $73.1 million, Growth
followed by nancial business at $61.9 million and
communications at $24 million. China was the largest Pakistan aims to expand its US$30 billion goods export
recipient at $114.1 million, followed by the United base to promote economic growth and address
Kingdom at $47.2 million, the Netherlands at $29.8 balance-of-payments issues. The government is shifting
million, the United States at $26.4 million and the United to a growth model focused on export and private
Arab Emirates at $14.7 million. investment, seeking to increase both the volume and
quality of exports. Notably, IT exports have reached
FBR Collect PKR 1.722 trillion in around US$4.6 billion in FY2026. To support exporters,
July-August 2026 initiatives like a PKR 3 billion SME Risk Pool and trade
credit insurance have been established. The government
FBR cumulative collections for July-August 2026 reached is also implementing nancial measures, including 4.5%
PKR 1.722 trillion, surpassing the target of PKR 1.710 nancing for exporters and tax reductions, to enhance
trillion by PKR 12 billion, but only re ecting a 4% growth competitiveness. With projected economic growth of
over PKR 1.656 trillion from the previous year. Strong 3.7% in FY2026 and a scal de cit of 2.6% of GDP, with the
sales tax and federal excise duty receipts contributed aim to boost productive capacity and reduce reliance on
positively, with income tax collections at PKR 688 billion, external nancing.
below the target by PKR 70 billion and 3% less than last

86 ICMA’s Chartered Management Accountant, Jul-Aug 2026