Pakistan’s economy grew 3.89% in the second quarter (October–December) of FY2025‑26, according to provisional figures released by the National Accounts Committee (NAC).
The expansion was primarily driven by strong industrial activity and steady services sector growth, while agriculture contributed only modestly.
Industrial Sector Powers the Economy
The industrial sector posted a 7.4% increase, with large‑scale manufacturing, construction, and utilities leading the surge.
Key contributors included automobile production, transport equipment, and petroleum-related industries. These gains offset slower performance in agriculture and mining.
Services Sector Remains Resilient
The services sector grew approximately 3.7%, supported by trade, finance, transport, and public administration.
Steady domestic demand and commercial activity helped maintain momentum despite broader economic challenges.
Agriculture Lags Behind
Agriculture expanded only 1.8%, weighed down by lower output in key crops like cotton.
Livestock production provided some support, but overall, rural production remained a weak link in the economy.
Revisions and Outlook
NAC also revised Q1 FY2025‑26 growth to 3.63%, slightly lower than earlier estimates.
For the full fiscal year, growth is expected to remain in the 3.5–4.0% range, with industrial and services sectors likely sustaining momentum. Agriculture and external pressures, including global oil prices, remain key constraints.
Implications for Pakistan
A near‑4% GDP growth in Q2 is a positive sign, showing that certain sectors are gaining strength.
However, slower agricultural growth and structural challenges like unemployment and poverty mean that the benefits may not reach all households. Sustaining growth will depend on investment, job creation, and export performance.
