Azernews.Az

by Alimat Aliyeva

Pakistan’s economy expanded by 3.89% in the second quarter of fiscal year 2025–26, driven largely by strong performance in the industrial sector, according to official data released on Thursday, AzerNEWS reports, citing foreign media.

Growth was led by industry, which surged by 7.40%, while the services sector and agriculture grew by 3.69% and 1.76%, respectively, data from the Pakistan Bureau of Statistics showed.

The figures were approved at the 116th meeting of the National Accounts Committee, which also revised earlier growth estimates. The committee adjusted the first-quarter growth for fiscal 2025–26 to 3.63%, slightly down from the previously reported 3.71%, mainly due to downward revisions in agriculture and industry.

Agricultural growth for the first quarter was revised to 2.72%, while industry growth was adjusted to 8.86%. In contrast, the services sector saw a slight improvement, with growth revised up to 2.44%.

On an annual basis, Pakistan’s GDP growth for fiscal year 2023–24 was marginally revised to 2.62%, while growth for 2024–25 was adjusted to 3.06%, reflecting gradual economic recovery.

In the second quarter, the agriculture sector showed modest growth despite declines in major crops, supported by gains in livestock and related activities. Meanwhile, industrial growth was fueled by large-scale manufacturing, which expanded by 5.71%, along with strong performance in construction and utilities.

The services sector also recorded steady growth, driven by wholesale and retail trade, transportation, financial services, and public administration.

Analysts note that the stronger industrial performance may signal a gradual stabilization of Pakistan’s economy, particularly as infrastructure projects and energy supply improve. However, challenges such as inflation and external debt pressures remain key risks. If current trends continue, the country could see more balanced growth across sectors, reducing its historical reliance on agriculture and strengthening its industrial base.