Pakistan’s economy recorded a 3.89% growth in the second quarter of FY2025-26, supported largely by improved performance in the industrial and services sectors, according to the latest GDP estimates released after the review by the National Accounts Committee.
The committee also revised the first-quarter growth slightly downward to 3.63% from 3.71%, bringing the average GDP growth for the first half (1HFY26) to 3.76%, in line with overall annual expectations.
The agriculture sector posted 1.76% growth in Q2FY26, marginally higher than 1.72% in the same period last year.
Growth highlights include:
- Livestock: 5.59%
- Forestry: 3.76%
- Fishing: 0.77%
However, crop production declined by 1.87%, limiting overall sector performance. For the first half, agriculture growth averaged 2.2%, falling short of the government’s 3% annual target.
Industry Emerges as Key Growth Driver
The industrial sector led economic expansion, recording a strong 7.4% growth in Q2FY26, compared to just 0.8% a year earlier.
Major contributors:
- Automobile production surged by 53%
- Transport equipment increased by 41%
- Petroleum products rose by 25%
- Electricity, gas, and water supply grew by 15%
- Construction activity also expanded
However, mining and quarrying declined by 2.46%, mainly due to reduced gas and marble output.
Overall, industrial growth averaged 8.1% in the first half, signaling a strong recovery from last year’s low base.
Services Sector Shows Steady Improvement
The services sector grew 3.69% in Q2FY26, supported by:
- Public administration: 8.69%
- Education and social services: 5.66%
Average growth in services stood at 3.1% in the first half, slightly higher than 2.6% recorded last year.
Pakistan’s economy is showing gradual recovery, with industry acting as the main growth engine while agriculture remains subdued. Sustained momentum in industrial output and services will be crucial for meeting full-year economic targets.
