Pakistan has achieved a significant economic milestone as its provisional growth rate for the fiscal year 2025-26 reached 3.70 percent. This growth has propelled the overall size of the national economy past the 452 billion dollar threshold for the first time in history. The figures were formally approved during the 117th meeting of the National Accounts Committee held at the Pakistan Bureau of Statistics headquarters in Islamabad. Chaired by the Secretary of the Ministry of Planning Development and Special Initiatives the session highlighted a steady recovery path for the country following years of fiscal consolidation and stabilization efforts.
The latest data reveals that the total value of the economy has climbed to 126.9 trillion rupees which is equivalent to 452.1 billion dollars. This is a substantial increase from the previous fiscal year when the economy was valued at 114 trillion rupees or 408.2 billion dollars. Alongside the expansion of the total GDP the per capita income of citizens has also seen a visible rise reaching 533,629 rupees or 1,901 dollars. These figures are based on the population projections from the 2023 Census and suggest a gradual improvement in the national standard of living on a macroeconomic scale.
The committee provided a detailed breakdown of the quarterly performance which showed consistent momentum throughout the year. The first quarter growth was revised upward to 3.92 percent while the second quarter saw an adjustment to 4.05 percent. The provisional reading for the third quarter came in at 3.99 percent indicating that the recovery is broad based and not dependent on a single seasonal spike. This stability is attributed to positive contributions from the three main pillars of the economy namely agriculture industry and services.
Agriculture which remains a critical sector for employment and food security grew by 2.89 percent during the fiscal year. The performance within this sector was largely positive with wheat production rising to 29.6 million tonnes and sugarcane output climbing to 89.45 million tonnes. Rice production also saw a healthy increase reaching nearly 10 million tonnes. While maize and cotton experienced slight declines of 2.68 percent and 0.5 percent respectively the livestock sub sector showed resilience with an expansion of 3.75 percent. Furthermore high value crops like potatoes and bananas recorded double digit gains providing a boost to rural incomes.
The industrial sector posted a provisional growth of 3.51 percent with large scale manufacturing emerging as a primary driver. Data from the Quantum Index of Manufacturing showed a 6.11 percent expansion in the large scale segment fueled by an extraordinary 61 percent surge in the automobile industry and nearly 40 percent growth in transport equipment. Petroleum products and food manufacturing also contributed positively. However the industrial total was weighed down by a sharp contraction in the electricity gas and water supply sub sector which fell by 10.63 percent due to a high base effect and reduced energy subsidies. Construction remained a bright spot growing by 5.73 percent due to increased public and private sector spending.
The services sector which constitutes the largest portion of the GDP expanded by 4.09 percent. Public administration and social security led the growth in this category followed closely by the information and communication sector. Wholesale and retail trade which serves as a vital indicator of consumer demand grew by 3.71 percent while education and healthcare services also posted steady gains. The committee also finalized previous years’ data confirming a 2.62 percent growth for FY 2023-24 and an upgraded 3.18 percent for FY 2024-25. This consistent upward trend from 2.62 percent to 3.70 percent over three years reflects a resilient and recovering economic landscape for Pakistan.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.