Pakistan Economy Witnesses Robust Growth in Fourth Quarter FY25

Islamabad: Pakistan’s economy experienced significant growth in the fourth quarter of the fiscal year 2025, with the Gross Domestic Product (GDP) expanding by 5.7% year-on-year, according to the National Accounts Committee. This marks the highest quarterly growth in two years and brings the overall GDP growth for FY25 to 3.04%, surpassing the previous estimate of 2.68%.

In the fourth quarter, the agriculture sector posted a modest growth of 0.2%, driven by gains in other crops and livestock, despite a 17.55% contraction in important crops. The industrial sector saw a substantial increase of 19.95%, buoyed by a remarkable 121.4% growth in the electricity, gas, and water supply industry due to higher subsidies and a favorable base effect. The services sector also contributed positively, growing by 3.7%, led by advancements in wholesale and trade, as well as transportation and storage.

For the full year FY25, the agriculture sector’s growth improved to 1.5% from the previous 0.6%, while the industry rose to 5.3% and services to 3.0%. The improvements in these sectors reflect a recovery from previous challenges, with forestry and fishing also showing positive growth.

Looking ahead, forecasts suggest that Pakistan’s GDP could grow between 2.8% and 3.3% in FY26. The projections indicate the agriculture sector may expand by 2.6%, the industrial sector by 3.4%, and services by 2.9%. These estimates come as the government also revised the final GDP growth figure for FY24 from 2.51% to 2.58%.

The recent growth figures highlight a gradual economic recovery for Pakistan, with key sectors showing resilience despite earlier setbacks. The data underscores the importance of supportive policies and external factors in driving economic progress.