The State Bank of Pakistan (SBP) released its 'State of Pakistanβs Economy: Half Year Report' for the first half of fiscal year 2026 (H1 FY26), indicating an improvement in macroeconomic stability despite external pressures from global trade uncertainty and domestic flooding.
The report highlights that Pakistan's economy showed signs of recovery during the period, with key indicators such as inflation and fiscal deficit showing improvement. However, the SBP cautioned that ongoing global conflicts and trade disruptions pose significant risks to the country's economic outlook.
Domestic challenges, including recent flooding in certain regions, have also impacted agricultural output and supply chains. The central bank emphasized the need for continued policy vigilance to sustain the positive momentum and mitigate potential shocks.
