Pakistan has achieved a significant economic milestone as the national economy officially crossed the 452 billion dollar threshold. During the 117th meeting of the National Accounts Committee held in Islamabad, officials approved a provisional GDP growth rate of 3.70 percent for the fiscal year 2025-26. This performance marks a steady climb from previous years, reflecting a gradual stabilization of the macroeconomic landscape. The total size of the economy is now estimated at 126.9 trillion rupees, a substantial increase from the 114 trillion rupees recorded in the preceding period. This expansion has also translated into an improvement in per capita income, which has risen to 1,901 dollars based on the latest census projections.
The growth observed throughout the year was fueled by consistent contributions across all major sectors. The industrial sector emerged as a primary driver, expanding by 3.51 percent. Within this segment, large-scale manufacturing demonstrated exceptional vigor, particularly in the automobile and transport equipment industries. While the energy sector faced some contraction due to high base effects and reduced subsidies, construction activity remained resilient with a growth rate of 5.73 percent. This upward trend in industry highlights a return to productivity after several years of stagnation, supported by lower borrowing costs and renewed private sector investment.
In the agriculture sector, the country recorded a 2.89 percent growth rate. Key crops such as wheat, sugarcane, and rice saw increased production levels, contributing to national food security. Although cotton and maize witnessed marginal declines, the livestock sub-sector remained a powerhouse of the rural economy, expanding by 3.75 percent. Furthermore, high-value crops including potatoes and bananas posted double-digit gains, showcasing the diversification within the farming landscape. These figures suggest that despite various climate and supply chain challenges, the primary sector continues to provide a solid foundation for the national growth trajectory.
The services sector, which constitutes the largest portion of the economy, grew by 4.09 percent. Notable performance was seen in information and communication technology, which expanded by 7.52 percent, alongside significant contributions from public administration and education. This shift towards a service-oriented economy is further evidenced by the 3.71 percent growth in wholesale and retail trade, indicating a recovery in consumer demand. The State Bank of Pakistan has noted that while the recovery is currently supported by domestic consumption and remittances, there is an urgent need to transition toward a model led by exports and long-term investment.
As the government continues its reform agenda, the focus remains on enhancing revenue collection and ensuring fiscal discipline. Recent data highlights that the country has achieved historically strong primary surpluses, which have improved sovereign credibility in the eyes of international financial institutions. With the foreign exchange reserves projected to reach 17 billion dollars by the end of the fiscal year, the outlook for the coming months remains cautiously optimistic. Authorities are now prioritizing structural reforms in the energy and tax sectors to ensure that this growth becomes sustainable and inclusive for all segments of the population.
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