Pakistan records 2.68% GDP growth in FY25

May 20, 2025 (MLN): Pakistan’s Gross Domestic Product (GDP) has posted a provisional annual growth of 2.68% for the fiscal year 2024-25.

In the third quarter (Q3), GDP grew by 2.40%, driven by strong performance in the services sector (3.99%) and moderate growth in agriculture (1.18%), despite a contraction in industry of -1.14%, according to the National Accounts Committee (NAC).

The committee also approved the revised growth rates of 1.37% for Q1 and 1.53% for Q2 FY25, as compared to 1.34% and 1.73% presented in the previous NAC meeting.

These revisions were influenced by updated data in agriculture, industry, and services.

The updated growth in agriculture during FY25Q1 was revised upward to 0.84% from 0.74%, mainly due to an improvement in other crops (from 0.43% to 5.53%) and forestry (from -2.07% to 0.79%).

In Q2, despite improvement in other crops (from 0.73% to 5.52%), forestry (from -0.64% to 3.18%), and fishing (from 0.79% to 1.63%), a deeper contraction in important crops (from -7.65% to -12.09%) led to a downward revision in agriculture growth from 1.10% to 0.79%.

The rate of contraction in industry for Q1 was revised downward from -0.66% to -0.91%, mainly due to a decline in electricity, gas and water supply (from +1.37% to -2.30%).

Similarly, Q2 industry growth was revised from -0.18% to -0.99% due to electricity, gas and water supply declining from 7.71% to -3.40%.

The revised growth in services improved slightly from 2.21% to 2.28% in Q1, and from 2.57% to 2.59% in Q2, driven by improvements in wholesale & retail trade, transportation & storage, information & communication, and public administration & social security.

During Q3, agriculture grew by 1.18% with other crops increasing by 4.84% due to double-digit growth in onion (11%) and mango (26%).

Livestock registered a growth of 4.42%, forestry 4.25%, and fishing 0.50%. However, important crops continued to decline (-11.14%).

Industry contracted by -1.14% in Q3 due to negative growth in mining & quarrying (-3.96%), large-scale manufacturing (-0.89%), electricity, gas & water supply (-7.72%), and construction (-9.12%).

Services grew by 3.99% during Q3 FY25, with all components contributing positively: wholesale & retail trade (1.57%), transportation & storage (0.67%), information & communication (18.44%), finance & insurance (10.65%), public administration & social security (13.73%), education (4.63%), health & social work (5.06%), and other private services (2.93%).

The committee also approved the final GDP growth for FY2022-23 at -0.21% and revised growth for FY2023-24 at 2.51%.

In FY2023-24, agriculture improved to 6.40% (from 6.18%), industry to -1.37% (from -1.65%), while services slightly declined to 2.19% (from 2.35%).

The size of the economy reached Rs114.7trillion ($411.0 billion) with a per capita income of Rs509,174 ($1,824).

Overall the forum appreciated the efforts of National Accounts team of PBS and key stakeholders including Ministry of Planning Development and Special Initiatives, Ministry of Finance and State Bank of Pakistan in preparation of quarterly GDP and annual GDP.

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