Pakistan's GDP grows 3.70% in FY 2025-26, economy reaches $452bn

May 13, 2026 (MLN): Pakistan's economy has posted a provisional growth rate of 3.70% during the ongoing fiscal year 2025-26, with the overall size of the economy crossing the $452 billion threshold for the first time.

The figures were approved at the 117th meeting of the National Accounts Committee (NAC), held today at the Pakistan Bureau of Statistics headquarters, Islamabad.

The meeting was chaired by the Secretary of the Ministry of Planning Development and Special Initiatives.

According to the data approved at the meeting, the economy now stands at Rs126.9tr, equivalent to $452.1bn, compared to Rs114.0tr ($408.2bn) in the previous fiscal year.

Per capita income has risen to Rs533,629 or $1,901 based on population projections from the 2023 Census, showing a meaningful improvement in living standards on paper.

The committee also revised upward its earlier quarterly estimates. First-quarter growth for FY 2025-26 was revised from 3.63% to 3.92%, while the second quarter was revised upward from 3.89% to 4.05%.

The third quarter, for which provisional figures were presented, clocked in at 3.99% a stable and encouraging reading driven by broad-based contributions from all three major sectors of the economy.

Agriculture, which accounts for a significant share of Pakistan's economy and employment, grew at 2.89% for the full year.

The picture within the sector was mixed. Wheat production rose by 4.3% to 29.6m tonnes, sugarcane climbed 6.2% to 89.45m tonnes, and rice output grew by 2.8% to just under 10m tonnes.

However, maize and cotton both saw marginal declines of 2.68% and 0.5% respectively. Livestock the single largest contributor within agriculture expanded by 3.75%, while high-value crops such as gram, potato, and banana posted impressive double-digit gains.

Industry grew by 3.51% provisionally during FY 2025-26, with large-scale manufacturing emerging as the star performer.

Measured through the Quantum Index of Manufacturing for the July-to-March period, large-scale manufacturing expanded by 6.11%, powered by remarkable growth in automobiles (61.66%), transport equipment (39.93%), petroleum products (10.92%), and food (9.77%). Small-scale manufacturing also grew solidly at 8.50%.

The main drag on the industrial sector was electricity, gas, and water supply, which contracted sharply by 10.63% a consequence of the high base set in FY 2024-25 when the same sector had grown by 29.60%, as well as lower energy subsidies and slower growth in WAPDA output.

Construction, however, held firm with 5.73% growth, supported by increased spending from both the private sector and the general government.

Services, the largest component of Pakistan's economy, grew at 4.09% and saw positive contributions from all sub-sectors. Public administration and social security led the way with 8.54% growth, followed by information and communication at 7.52%, human health and social work at 6.85%, and education at 5.23%.

Wholesale and retail trade a bellwether for consumer activity grew by 3.71%, while transport and storage expanded by 2.31%.

The committee also finalised growth figures for previous years.

The annual GDP growth for FY 2023-24 was confirmed at 2.62%, while the revised figure for FY 2024-25 was upgraded from an earlier estimate of 3.06% to 3.18%.

The improvement in the FY 2024-25 revision was primarily driven by stronger-than-expected performance in construction, which was revised up from 6.54% to 8.77%, and in finance and insurance, which jumped from 6.27% to 9.10%.

Taken together, the data points to a gradual but consistent economic recovery. From a low of 2.62% in FY 2023-24 a year marked by economic turbulence and IMF stabilisation measures Pakistan's GDP growth has steadily climbed to 3.18% in FY 2024-25 and now stands provisionally at 3.70% for the current fiscal year.

The NAC forum, at the close of the meeting, appreciated the efforts of the National Accounts team at the Pakistan Bureau of Statistics and key stakeholder institutions including the Ministry of Finance, the Ministry of Planning Development and Special Initiatives, and the State Bank of Pakistan.

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