Pakistan’s economy expanded by 3.71 percent in the first quarter (July-September) of FY26, up from 1.56 percent in the same period last year, though slower than the previous quarter's 6.17 percent growth due to weak demand and monsoon floods.
Key Growth Drivers
The expansion was led by a robust 9.38 percent rise in the industrial sector, supported by 2.89 percent growth in agriculture and 2.35 percent in services. Large-scale manufacturing grew 3.93 percent, boosted by automobiles (84.60 percent), transport equipment (40.73 percent), and food products (6.30 percent).
Sector Breakdown
- Agriculture (2.89 percent): Livestock rose 6.29 percent, but crops fell 6.37 percent amid lower green fodder and higher fertilizer costs; cotton output dropped 1.2 percent.
- Industry (9.38 percent): Mining declined 4.13 percent due to lower gas and oil; construction improved with 15.32 percent cement production growth.
- Services (2.35 percent): Steady but mixed performance overall.
Projections and Revisions
The National Accounts Committee revised FY25 growth to 1.56 percent (Q1), 2.03 percent (Q2), 2.66 percent (Q3), and 6.17 percent (Q4). SBP forecasts 4 percent GDP growth for FY26, World Bank 3 percent, and the government targets 4.2 percent.
