By Riaz Hussain
Peshwar: Pakistan’s economy posted stronger growth during the current fiscal year, with the country’s overall economic size reaching $452.1 billion and major sectors showing steady recovery, according to fresh estimates approved by the National Accounts Committee (NAC) on Wednesday.
The committee provisionally estimated the country’s gross domestic product (GDP) growth at 3.7 per cent for fiscal year 2025-26, lower than the government’s initial 4pc target but still reflecting an improvement compared to the revised 3.18pc growth recorded in FY2024-25.
Officials said the economy’s expansion was mainly supported by improvements in the services and industrial sectors, while agriculture maintained moderate growth despite mixed crop performance.
According to data released by the Pakistan Bureau of Statistics, the overall size of the economy increased from $410.96bn last year to $452.1bn in FY26. Per capita income also rose slightly to $1,901 from $1,824 a year earlier.
The NAC meeting, chaired by the Secretary of the Ministry of Planning and Development at Statistics House in Islamabad, also revised upward the quarterly GDP growth figures for the first two quarters of FY26. Growth for Q1 was revised to 3.92pc from 3.63pc, while Q2 was adjusted to 4.05pc from 3.89pc. The economy recorded provisional growth of 3.99pc during the third quarter.
The industrial sector emerged as one of the strongest contributors to economic recovery, recording growth of 3.51pc for the fiscal year. Large-scale manufacturing expanded by 6.11pc, supported by higher production in automobiles, petroleum products, electrical equipment, transport equipment and food manufacturing.
Construction activity also improved significantly, posting growth of 5.73pc due to increased private and public sector spending on infrastructure and development projects.
However, the electricity, gas and water supply sector contracted by 10.63pc, while mining and quarrying recorded only marginal growth amid declines in natural gas and crude oil production.
The agriculture sector grew by 2.89pc during FY26. Wheat production increased from 28.396 million tonnes to 29.605 million tonnes, while sugarcane and rice also recorded gains. However, cotton and maize production witnessed slight declines.
Livestock remained a key support for rural incomes, growing by 3.75pc, while forestry and fishing sectors also posted positive growth.
Meanwhile, the services sector — the largest contributor to Pakistan’s economy — expanded by 4.09pc, led by gains in information and communication, education, public administration, health services and wholesale and retail trade.
Economic analysts say the latest figures indicate gradual macroeconomic stabilization after years of inflationary pressure, currency depreciation and slowing industrial activity. However, they note that rising population growth and persistent cost-of-living pressures continue to limit improvements in household incomes and living standards.
The NAC also approved final GDP growth for FY2023-24 at 2.62pc and revised FY2024-25 growth at 3.18pc, confirming a gradual economic recovery trend over the past three years.
Pakistan’s Economy Shows Recovery Signs Despite Missing Growth Target
