Pakistan’s gross domestic product (GDP) grew a modest 1% in the second quarter (October-December) of fiscal year 2023-24, estimates released by the Pakistan Bureau of Statistics (PBS) on Thursday showed.

“During Q2 2023-24, the economy posted a modest growth of 1.0%,” stated a press release issued by the PBS after the 108th National Accounts Committee (NAC) meeting.

The GDP figure is below expectations as official estimates had put the number in the range of 2-3%.

The NAC also approved a revised figure for the first quarter, pegging growth at 2.5% as compared to 2.13% estimated in the 107th meeting.

The Finance Ministry in its ‘Economic Monthly Update & Outlook February 2024’ had estimated Q2 fiscal year 2023-24 GDP growth to rise to around 3%, claiming stronger manufacturing output and higher production of crops including cotton.

However, in its statement, the NAC noted that while agriculture has shown growth of 5.02% as compared to same period of last year, industries posted a contraction of 0.84%, while services also showed a nominal growth of 0.01%.

Pakistan has put its growth forecast at 2-2.5% for the ongoing fiscal year.