ISLAMABAD: Pakistan’s Gross Domestic Product (GDP) grew by 1.73% in the second quarter (Q2) of the fiscal year 2024-25, up from the revised 1.34% in the first quarter (Q1), according to the 112th meeting of the National Accounts Committee (NAC), chaired by the Secretary of the Ministry of Planning, Development, and Special Initiatives (M/O PD&SI). The committee approved updated GDP figures for Q1 and provisional growth for Q2.
The revised GDP growth for Q1 was set at 1.34%, up from the previously estimated 0.92%. The updated agriculture sector growth fell to 0.74% from 1.15%, mainly due to downward revisions in other crops (from 2.08% to 0.43%) and forestry (from 0.78% to -2.07%). The industrial sector’s contraction rate improved from -1.03% to -0.66% due to better performance in electricity, gas, and water supply (from 0.58% to 1.37%) and construction (from -14.91% to -11.71%).
However, the mining and quarrying industry saw a decline from -6.49% to -8.06%, driven by reduced production of coal (-2.08%), limestone (-8.01%), and other minerals (-5.47%). Despite declines in finance and insurance (from 1.14% to -0.28%), growth in transport (from -0.07% to 0.16%), public administration (from -4.49% to 4.40%), education (from 2.03% to 4.76%), and health (from 5.60% to 6.70%) led to an overall services sector growth of 2.21%.
In Q2, Pakistan’s GDP posted 1.73% growth, with agriculture at 1.10%, industry at -0.18%, and services at 2.57%. However, crops contracted by 5.38%, with major declines in cotton (-30.7%), maize (-15.4%), rice (-1.4%), and sugarcane (-2.3%). Wheat cultivation also dropped by 6.8% compared to last year. The livestock sector grew by 6.51%, up from 2.96% in Q2 of the previous year, due to lower fodder consumption. Forestry declined by 0.64%, while the fishing industry recorded modest growth of 0.79%.
The industrial sector’s contraction slowed from -1.81% in Q2 2023-24 to -0.18% in Q2 2024-25. Mining and quarrying declined by 3.29% due to lower coal (-6.34%), gas (-6.16%), and crude oil (-11.4%) production. Large-scale manufacturing (LSM) fell by 2.86% due to negative growth in sugar (-12.63%), cement (-1.82%), and iron & steel (-17.86%). However, electricity, gas, and water supply grew by 7.71%, and the construction sector declined by 7.14% due to reduced production of cement (-1.82%) and iron & steel (-17.86%).
The services sector expanded by 2.57%, up from 1.32% in Q2 last year, despite a contraction in wholesale and retail trade (-1.13%) due to lower LSM output and imports. The transport and storage sector grew by 1.15%, supported by increased activity in road, air, and water transport. A slowdown in inflation contributed positively to real value-added industries, with notable growth in information and communication (8.45%), finance and insurance (10.21%), public administration and social security (9.10%), education (4.80%), and health (6.60%). Other areas of growth included accommodation and food services (4.45%), real estate activities (4.12%), and other private services (3.14%).