By Staff Reporter
ISLAMABAD: Pakistan’s economy expanded faster than previously estimated in the fiscal year through June, driven by upward revisions in industrial and agricultural output, according to official data released on Wednesday.
Gross domestic product rose 3.04% in fiscal 2025 from a year earlier, the Pakistan Bureau of Statistics said in a statement. That’s above the 2.68% estimate from the National Accounts Committee’s prior meeting. “The updated growth rates in agriculture, industry and services are 1.51%, 5.26% and 3% as compared to earlier growth rates of 0.56%, 4.77% and 2.91% respectively,” the NAC said in its 114th meeting.
The revisions underscore a modest rebound in South Asia’s second-largest economy, which has grappled with high inflation, fiscal deficits and external pressures in recent years. Pakistan secured a $7 billion bailout from the International Monetary Fund in September 2024 to stabilize its finances, though growth remains below the government’s initial target of 3.5% for the period.
In agriculture, which accounts for about a fifth of GDP, important crops contracted 13.12%, a slight improvement from the prior estimate of -13.49%. Other crops surged 19.55%, up sharply from 4.78%, fueled by double-digit increases in green fodder (16%), vegetables (12%), fruits (10%) and tobacco (25.7%). Livestock growth slowed to 2.94% from 4.72% due to higher fodder inputs. Forestry expanded 2.66%, while fishing grew 1.40%.Industry posted 5.26% growth, revised up from 4.77%.
“The mining & quarrying industry has improved from -3.38% to -2.35% due to improvement in oil (3.5%), limestone (31.6%), marble (11.6%), and exploration cost (26.1%). Large-scale manufacturing, which is measured through Quantum Index of Manufacturing (QIM), has improved from -1.53% to -0.69%,” the statement said.
Services, the largest sector, edged up to 3% from 2.91%, with gains across most sub-components. “Wholesale and retail trade has improved to +0.46% from 0.14% because of improvements in agriculture, manufacturing, and imports. The transport and storage industry has improved to +2.43% from 2.20% due to upward revisions reported by NTRC, PIA, domestic airlines, CAA, foreign airlines, KPT and storage activities. While information & communication has slightly declined from 6.48% to +5.85%, finance & insurance has improved from 3.22% to +3.90% due to improvement in the insurance industry,” it added.
The overall economy reached Rs113.7 trillion in fiscal 2025, up from Rs105.2 trillion the prior year. Per-capita income stood at Rs506,188 ($1,812).The NAC also approved revised quarterly GDP figures for the year. Growth was upgraded to 1.80% in the first quarter from 1.37%, to 1.94% in the second from 1.53%, and to 2.79% in the third from 2.40%. “These changes are mainly due to upward revisions in annual benchmarks in agriculture, resulting in improved growth rates,” the committee said. The fourth quarter showed the strongest expansion at 5.66%, with agriculture up 0.18%, industry surging 19.95% and services rising 3.72%.
Pakistan is currently trying to recover from recent monsoon floods that inundated large parts of Punjab and Khyber Pakhtunkhwa, damaging homes, infrastructure, and farmland, with the World Bank projecting the national economy to grow by 2.6 percent in the ongoing fiscal year (FY2026), lowering its earlier estimate of 3.1 percent. It said the country’s economic recovery would depend on an agricultural rebound and lower inflation in the coming years, with growth expected to accelerate to 3.4 percent in the next fiscal year (FY2027).
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