Pakistan posted a gross domestic product (GDP) growth of 3.71% during the first quarter of FY2026, marking a notable improvement over the 1.56% growth in the same period of FY2025, according to Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal.
“This is 2.15% more than the corresponding number of Q1 2024-25,” the minister highlighted in a social media post, describing the figures as a qualitative shift in the trajectory of Pakistan’s economy. He emphasized that the growth is primarily driven by the industrial sector, which expanded by 9.38% in Q1 FY2026 compared to only 0.12% in Q1 FY2025.
Despite facing challenges such as the 2025 flood shock, fiscal tightening measures, withdrawal of energy subsidies, and rising food inflation, Pakistan’s economy managed to sustain positive growth, indicating resilience in key sectors. Ahsan Iqbal noted that the performance reflects both policy effectiveness and a gradual recovery of industrial activity.
For FY2025, Pakistan recorded a GDP growth of 3.04%, according to estimates released by the Pakistan Bureau of Statistics (PBS) in October. This figure was slightly higher than the 2.68% growth estimated by the National Accounts Committee (NAC) earlier. The overall size of the economy for FY2025 stood at Rs113.7 trillion ($407.2 billion), up from Rs105.2 trillion ($371.8 billion) in the previous fiscal year, reflecting steady expansion despite economic headwinds.
Per capita income for FY2025 reached Rs506,188, or $1,812, according to NAC data, highlighting gradual improvements in individual income levels alongside overall economic growth. Analysts note that the industrial-led growth in Q1 FY2026, including manufacturing, construction, and related sectors, is a key indicator of sustainable economic recovery and diversification.
The robust industrial performance is expected to contribute to higher employment, increased productivity, and stronger investor confidence, positioning Pakistan on a path of steady economic expansion. With continued focus on fiscal discipline, infrastructure investment, and structural reforms, the government aims to maintain growth momentum for the remainder of FY2026.
Overall, the Q1 FY2026 GDP growth reflects a resilient economic trajectory for Pakistan, underpinned by industrial strength and effective policy measures, signaling optimism for broader economic stability and long-term development.
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