ISLAMABAD: Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal on Tuesday said that the country’s Gross Domestic Product (GDP) grew by 3.71 percent in the first quarter of the 2025-26 financial year which is 2.15 percent increase during the same period of 2024-25.
In a statement made on social media platform X, the minister said the growth of the first quarter is satisfactorily higher than the corresponding quarter of financial 2024-25, calling it a qualitative shift in the country’s economic trajectory.
He said the latest figures indicate growing resilience in the economy and reflect the impact of policy adjustments aimed at stabilisation and recovery.
The minister said this indicates a significant improvement in the GDP growth trajectory compared to 2024-25. He added that in 2024-25, the quarterly GDP growth rates were 1.56 percent, 2.03 percent, 2.66 percent, and 6.17 percent. He said that the start of 2025-26 has more than doubled compared to the same quarters of 2024-25.
READ MORE: Pakistan’s GDP grows 3.04% in FY2025, economy size reaches $407bn: NAC
He said the most encouraging aspect is that the growth is driven by the industrial sector, which expanded by 9.38 percent in the first quarter of 2025-26, compared to just 0.12 percent in the same period of 2024-25. He added that this growth is particularly remarkable given the challenges, including the 2025 flood shock, fiscal tightening, withdrawal of energy subsidies, and rising food inflation.
National Accounts Committee (NAC) approved first quarter growth for financial year FY2025-26 and updated annual estimates for FY 2024-25.
The 115th meeting of the National Accounts Committee (NAC) held Tuesday at Pakistan Bureau of Statistics, Headquarters, Statistics House, G-9/1, Islamabad. The Secretary Ministry of Planning chaired the meeting. The committee approved the updated annual growth rates for FY 2024-25 (Revised) and Q1 growth rate of GDP during FY 2025-26.
According to press release issued by at Pakistan Bureau of Statistics (PBS), economy posted a growth of 3.71 percent during financial year 2025-26 of first quarter (Q1) due to positive growth in Agriculture 2.89 percent, Industry 9.38 percent and Services is 2.35 percent.
It is said that annual updated growth rate of GDP during FY 2024-25 stands at 3.09 percent as compared to 3.04 percent approved in 114th NAC meeting
The committee approved the updated growth of GDP during FY 2024-25 at 3.09 percent as compared to 3.04 percent estimated previously due to slight improvement in Industry and Services sector.
The economy has posted a growth of 3.71 percent during Q1 of FY 2025-26. The growth in Agriculture, Industry and Services stands at 2.89 percent, 9.38 percent and 2.35 percent respectively. In, Agriculture, Important crops, have shown a growth of -0.75 percent while Other crops have witnessed a negative growth of 6.37 percent as compared to 19.33 percent in Q1 last year, mainly due to green fodder.
Industry sector has witnessed a growth of 9.38 percent as compared to 0.12 percent last year. The Mining and Quarrying Industry is showing negative growth of 4.13 percent mainly, decline in the production of gas (-7.1), crude oil (-4.9%), limestone (-6.8%) and other minerals (-4.2%). LSM growth on the basis of QIM, showed a positive growth of 4.10 percent in Q1 of 2025-26.
Major contributors have been Food 6.30 percent, Automobiles 84.60 percent, transport equipment 40.73 percent, non-metallic mineral products 13.86 percent and rubber products 14.10 percent.
Decline has been observed in machinery and equipment -14.08 percent. A growth of 25.46 percent has been reported in Electricity, Gas and Water supply on the basis of increase in output of Wapda and companies. Construction industry has shown positive growth mainly due to increase in production of cement by 15.32 percent besides increase in other indicators.
Services Industry has shown a growth of 2.35 percent in Q1 of 2025-26 as compared to 2.24 percent in Q1 last year. Wholesale and Retail Trade has witnessed a growth of 3.08 percent, Transport and Storage industry has increased by 3.16 percent, Information and communication is one of those industries, which has witnessed a negative growth of 28.70 percent because of decline in output of mobile companies which is used as indicator.
It is worth mentioning that GVA growth of this industry has witnessed positive growth in 2024-25, however, the decline in Q1 of 2025-26 is because of the decline in indicator i.e. Revenue of the mobile companies. Although IT exports has increased during the Q1, notwithstanding its impact is captured in the Annual National Accounts. The Finance & Insurance industry has shown a growth of 10.36 percent and Public Administration and Social Security, which is commonly termed as General Government by 8.08 percent as compared to last year.
On the basis of latest figures of the national accounts aggregates for FY 2024-25, the overall size of the economy stands at Rs.113.93 trillion, ie, USD 407.9 billion. Further, per capita income in rupees is 506,736/- ie, USD 1814. However, the series of per capita income from 2016-17 onwards will be revised after the receipt of backward and forward projections of population from the sources on the basis of 2023- Population Census.
Copyright Business Recorder, 2025