The figures, approved at the 116th meeting of the National Accounts Committee, reflect a gradual recovery in economic activity, with industry emerging as the primary growth engine, News.az reports, citing Xinhua.
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Industry leads economic expansion
Growth in the industry sector reached 7.40 percent in the second quarter, significantly outpacing other sectors. The performance was driven largely by improvements in large-scale manufacturing, which expanded by 5.71 percent, alongside notable gains in construction and utilities.
Analysts view the strong industrial output as a key signal of stabilisation in Pakistan’s production base after a period of volatility.
Services maintain steady momentum
The services sector recorded growth of 3.69 percent, supported by activity across wholesale and retail trade, transport, financial services, and public administration.
While not as strong as industry, the steady expansion of services suggests continued resilience in domestic demand and commercial activity.
Agriculture posts modest gains
Agriculture grew by 1.76 percent in the second quarter, reflecting mixed performance within the sector. While major crops experienced contractions, gains in livestock and related sub-sectors helped keep overall growth in positive territory.
The relatively weaker agricultural performance remains a concern, given the sector’s importance for employment and rural incomes.
Revisions to earlier growth estimates
The National Accounts Committee also revised earlier GDP figures, slightly adjusting the trajectory of Pakistan’s economic recovery.
First-quarter growth for fiscal year 2025-26 was revised down to 3.63 percent from an earlier estimate of 3.71 percent. The downgrade was attributed to lower-than-expected performance in agriculture and industry, although services growth was revised marginally upward to 2.44 percent.
Agriculture growth for the first quarter was adjusted to 2.72 percent, while industry growth was revised to 8.86 percent.
Annual growth figures adjusted
On an annual basis, GDP growth for fiscal year 2023-24 was marginally revised to 2.62 percent from 2.63 percent. Similarly, growth for fiscal year 2024-25 was adjusted to 3.06 percent from 3.09 percent.
These revisions indicate a relatively stable but moderate growth trajectory over recent years.
Outlook remains cautiously optimistic
Economists say the latest data points to a gradual strengthening of Pakistan’s economy, particularly in industrial production. However, they caution that sustained growth will depend on improvements in agriculture, continued policy stability, and external economic conditions.
The divergence between strong industrial output and weaker agricultural performance highlights structural imbalances that policymakers may need to address to ensure more inclusive and durable growth.
With services continuing to expand steadily, Pakistan’s near-term economic outlook remains cautiously optimistic, though challenges persist across key sectors.
