Islamabad, October 17, 2025 – Finance Minister Muhammad Aurangzeb has expressed confidence that Pakistan’s GDP growth will range between 3.5% and 4% in fiscal year 2025–26, despite the devastating impact of recent monsoon floods that ravaged farmland, displaced millions, and claimed over 900 lives nationwide.
In an interview with Bloomberg, Aurangzeb said preliminary assessments indicate substantial losses to Pakistan’s rice and cotton sectors, two key agricultural pillars. “This will put a dent in our GDP growth number,” he admitted. “My own view is it will still be north of 3.5%, early days, but anywhere between 3.5 to 4.”
Before the floods, the government had forecasted 4.2% economic growth for FY26. The finance minister emphasized that climate change is a harsh reality for Pakistan, saying, “We are living it, and the recent floods actually are a reflection of that.”
Aurangzeb noted that Pakistan’s economy has continued to stabilize following a near-default crisis two years ago. The country is set to receive $1.2 billion from the International Monetary Fund (IMF) after a successful review of its $7 billion loan program, helping sustain its $407 billion economy.
The IMF projects Pakistan’s GDP to grow between 3.25% and 3.5% in FY26, while inflation could exceed the 5–7% target range, easing from a record 38% two years ago.
Aurangzeb also revealed plans to launch Pakistan’s first yuan-denominated Panda bonds, worth $250 million, by November or December 2025 to diversify funding sources. “We’ve tapped the dollar, euro, and sukuk markets, but not yet the world’s second-largest capital market,” he added.