Pakistan’s corporate sector records 9% gains this fiscal year despite global challenges

Ismail Dilawar

Published Date: May 04, 2026

Published On: Arabnews

Pakistani listed corporate companies have posted 9 percent profitability during nine months of this fiscal year, the country’s finance adviser said on Sunday, despite global economic headwinds.

The gains were recorded at a time when global economy witnessed a mix of persistent inflation, uneven growth and geopolitical uncertainty, marked by ongoing conflicts and trade frictions that disrupted energy and commodity markets.

United Nations Secretary General Antonio Guterres warned this week an escalating crisis between the United States and Iran in the Strait of Hormuz could push tens of millions into poverty, trigger a surge in global hunger and even tip the world toward recession.

Amid prevailing global uncertainty, Pakistan’s corporate sector earned Rs1.24 trillion ($4.4 billion) from July 2025 till March 2026, reflecting a Rs100 billion ($358 million) increase year on year, according to Khurram Schehzad, an adviser to the Pakistani finance minister.

“Despite challenging global landscape, Corporate Pakistan (listed) delivered strong earnings growth in 9MFY26 vs 9MFY25, supported by lower costs and improving demand,” he said on X, adding that several sectors were delivering “exceptional triple-digit earnings growth” as well.

“Corporate performance underscores a stable and strengthening economic recovery.”

Pakistan’s economy recovered as growth strengthened and inflation declined in fiscal year (FY) 2025, which ended on June 30, supported by tight macroeconomic policies and progress in economic reforms.

While the South Asian nation, currently bolstered by a $7 billion International Monetary Fund (IMF) program, is expected to sustain its economic performance in the medium term as manufacturing recovers and investment increases, it faces elevated inflationary, fiscal and external account risks due to global economic uncertainty, according to the Asian Development Bank (ADB).

A prolonged Middle East war between the United States (US), Israel and Iran could weigh significantly on Pakistan’s economic outlook by slowing growth through higher energy and fertilizer costs, weakening agricultural and industrial output, reducing remittances, and widening the current account deficit.

“Addressing these challenges requires prudent macroeconomic policies and steadfast implementation of structural reforms,” the Bank said in its country outlook report last month. “Adherence to the economic adjustment program is therefore critical to strengthening resilience and enabling sustainable and inclusive growth.”