Karachi: Pakistan’s economy reported significant developments as the fiscal year 2025 unfolded with notable fiscal surpluses and sectoral growth, according to Abbott’s Corporate Briefing Session held on December 29, 2025. The country’s GDP growth for FY2025 was recorded between 2.8% and 3.0%, falling short of the government’s target of 3.6%. Despite this, the economy exhibited a positive trajectory, buoyed by prudent fiscal policies and a gradual recovery in the industrial and services sectors.
The fiscal landscape of Pakistan demonstrated substantial growth, with the Federal Board of Revenue (FBR) reporting a 186% surge in revenue collection during the first quarter of FY2026, reaching Rs 4,019 billion from Rs 1,406 billion the previous year. This was a result of strategic measures implemented by the government to enhance tax revenue. Additionally, non-tax collections soared by 566.9% to Rs 3.022 trillion, driven by impressive profit contributions from the State Bank of Pakistan, which amounted to Rs 2.4 trillion.
According to information available from the Pakistan Stock Exchange (PSX), Pakistan experienced a fiscal surplus of Rs 2.1 trillion, equivalent to 1.6% of GDP, and a primary surplus of Rs 3.5 trillion or 2.7% of GDP in the first quarter of FY2026. This economic position was largely supported by the robust fiscal strategies and monetary policies primarily aimed at stabilizing the economy amid existing challenges.
The current account, however, reversed its previous year’s surplus, posting a deficit of $733 million in the initial four months of FY2026. This shift was attributed to a 10% rise in imports, amounting to $20.7 billion, in contrast to exports, which saw a minor move, increasing by less than 1% to $10.6 billion. Workers’ remittances, however, offered some relief, increasing by 9% to $12.95 billion.
In corporate news, Abbott’s financial results for 2024 reflected a 22.9% increase in overall revenue, reaching Rs 68.18 billion. The company’s gross profit and net profit margins improved to 29% and 7.7%, respectively, thanks to favorable price adjustments and manufacturing optimizations. The earnings per share rose significantly to Rs 53.46 from Rs 2.67 in 2023. The pharmaceutical segment saw a 16% increase in revenue, while the nutritional segment grew by 19%. Diagnostics experienced a decline of 16%, and the ‘Others’ category decreased by 1%.
The period from January to September 2025 showcased Abbott’s continuing growth, with revenue increasing by 13.44% to Rs 56.22 billion. The gross profit margin improved to 34%, and the net profit margin rose to 9.5%. Segmental analysis showed the pharmaceutical and nutritional sectors experiencing notable growth, while diagnostics faced a downturn. Overall, Abbott’s financial performance reflected effective strategic initiatives and market adaptations.
As Pakistan moves forward, the government’s growth target for FY2026 is set at 4.2%, with the State Bank of Pakistan predicting a range of 3.25% to 4.25%. The International Monetary Fund remains slightly conservative, projecting a 3.6% growth. While optimism is fostered by lower inflation and fiscal reforms, persistent structural inefficiencies and external pressures continue to pose risks to sustained economic momentum.