Pakistan’s GDP Grows 1.73% in 2QFY25
Staff Report
Islamabad: Pakistan’s economy posted a real GDP growth of 1.73% in the second quarter of FY25, compared to a revised estimate of 1.34% in the first quarter. While this is lower than the 1.97% growth recorded in 2QFY24, it is slightly better than expectations.
Agriculture grew by 1.1%, led by a 6.51% increase in livestock, despite a 7.65% contraction in major crops. Cotton output declined by 30.7%, maize by 15.4%, rice by 1.4%, and sugarcane by 2.3%.
The industrial sector contracted by 0.18%, primarily due to an 11% drop in crude oil production, a 6% decline in coal and gas production, and decreases in sugar, iron, and steel. Large-scale manufacturing declined by 2.86%, while construction fell by 7%. However, electricity, gas, and water supply grew by 7.71%.
The services sector posted a 2.57% growth, driven by a 10% increase in finance and insurance and a 9% rise in public health and social security. Information technology, healthcare, and public-sector education grew by 5-8%.
The National Accounts Committee (NAC) revised first-quarter growth upward to 1.34% from 0.92%, mainly due to improved services sector performance. However, agriculture growth was revised downward, and industrial contraction figures were adjusted.
For FY25, GDP growth is projected at 2.5-3.0%, with agriculture expected to grow by 1.7%, industry by 2.1%, and services by 3.4%. The Asian Development Bank (ADB) recently upgraded Pakistan’s GDP forecast to 3% from 2.8%, while the central bank maintained its projection at 2.5-3.5%.
