Pakistan’s economic growth accelerated in the second quarter of the fiscal year, with GDP expanding by 3.9% year‑on‑year, official data released by the Pakistan Bureau of Statistics shows.
The increase reflects stronger activity in key sectors, particularly agriculture and services, which helped drive the overall expansion despite global headwinds.
Agriculture Sector Leads the Expansion
The agriculture sector recorded robust growth during the quarter, supported by improved crop yields, favourable weather, and government measures to boost production of major crops.
Cotton, wheat, and other staples drove much of the gains, contributing to higher rural incomes and greater demand for related services in transportation and processing.
Services Sector Boosts Overall Output
The services sector also posted notable expansion, with increased activity in wholesale and retail trade, transport, and communications.
Retail trade picked up as consumer demand strengthened, while transport and logistics saw gains from the higher movement of goods within the country.
Industry Shows Moderate Growth
The industrial sector contributed positively but at a more moderate pace compared to agriculture and services. Manufacturing, construction, and mining recorded modest gains, indicating a balanced yet uneven recovery across sectors.
Growth Outpaces Expectations
Analysts had forecast a slower pace of growth, but the 3.9% figure surpassed market expectations, suggesting resilience in the domestic economy.
The expansion comes despite challenges such as inflationary pressures, currency volatility, and external headwinds from global energy market disruptions.
Challenges Remain Ahead
Economists cautioned that sustaining growth will require addressing structural issues, including:
- Fiscal deficits and debt servicing
- Energy shortages
- Weak export performance
Long‑term economic stability still hinges on reforms in taxation, industrial competitiveness, and trade diversification.
