Pakistan Economy Grows 2.68% FY25 Amid Sectoral Divergence

Pakistan's economy experienced a provisional GDP growth of 2.68% for the fiscal year 2024-25, with third-quarter growth at 2.4%, driven primarily by a strong services sector expansion of 3.99% and moderate agricultural growth of 1.18%, despite a contraction in industry by 1.14%. Agriculture's mixed performance included significant declines in important crops but gains in other crops such as onions and mangoes, while livestock and forestry also grew. The industrial sector faced declines in mining, construction, electricity, gas, and water supply, limiting overall growth. Services showed robust growth, particularly in information and communication, finance, insurance, and public administration. The National Accounts Committee revised GDP growth rates for the first two quarters to 1.37% and 1.53%, reflecting updated sectoral data, while the economy's size is projected to reach approximately $411 billion. These growth figures, however, fall short of the government's original 3.6% target, with challenges including global trade disruptions and constraints from international financial support impacting the economic outlook.