Economic Policy & Business Development

Pakistan’s economy has a story.

We put almost 75 years of it in one place.

From 1950 to 2026, explore the numbers behind Pakistan’s GDP, inflation, debt, trade, energy and more, with every chart traceable to its source.

𝗗𝗼𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗿𝗲𝗮𝗱 𝘁𝗵𝗲 𝘀𝘁𝗼𝗿𝘆. 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗲 𝗱𝗮𝘁𝗮.
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Pakistan's banking sector credit has expanded. However, its allocation raises a critical policy question.

The government accounts for Rs 35.7tn (71%) of total credit, while private businesses received Rs 9.5tn (19%). This translates to Rs 3.75 lent to the government for every Rs 1 lent to business.

While banks' profits nearly tripled to Rs 716 billion in 2025 from Rs 244 billion in 2020, with 19% after-tax return to shareholders, SME financing remains constrained. SMEs share of private credit is only 9.9% against a target of 13%. Against SBP's target of 775,000 borrowers, only 323,987 borrowers (42%) were served.

Shouldn't the regulator have intervened to ensure enhanced lending to businesses and industry?

#FinanceDivision #SBP #SMEDA

Fuel levies are more than just numbers at the pump — they have a ripple effect on the cost of living, transportation, manufacturing, agriculture and export competitiveness.

With petroleum levy revenue projected to reach Rs 1.676 trillion in FY27, the burden falls disproportionately on ordinary citizens and businesses.

It’s time for a fairer, more progressive approach: rationalize unjustified fuel levies, ensure transparency in climate tax revenues, and introduce targeted policies that protect vulnerable households while supporting economic growth.

Taxation should promote equity, not punish the common man.

#Hiring

The real crisis in Pakistan is not just low incomes, it is the rising cost of living.

Wages have grown by 83% in 10 years, yet the average household can afford less than before. Real income is down by 18.8% because prices have risen by 204.3%.

This disconnect has changed the nature of poverty itself. It is no longer just about earning less, it is about paying more for food, fuel and transport. While official poverty is reported at 28.9%, 44.7% of Pakistanis are now below the World Bank's $4.20 line. A daily wage of Rs. 1300 that once bought 13.3kg of Atta now buys only 9.68kg.

What needs to change:
Stabilize prices of essential commodities. Shift focus from nominal wage growth to real purchasing power. Align economic policy with the cost-of-living reality.

Until prices are stable, growth will not translate into relief for the people.

Source: PBS, World Bank, SPDC