Pakistan’s economy demonstrated robust momentum in the third quarter of fiscal year 2025-26, registering a year-on-year GDP growth of 3.99%.
According to the National Accounts Committee (NAC), industry led the expansion, supported by steady gains in agriculture and services.
The overall size of the economy has now reached $452.1 billion.
Sectoral Performance Highlights
The industrial sector posted the strongest growth at 4.65% in Q3, primarily fueled by a remarkable 9.53% surge in large-scale manufacturing.
This offset contractions in mining & quarrying (-2.55%) and electricity, gas & water supply (-13.53%). Construction showed modest recovery with 0.48% growth.
Agriculture and Services Contributions
Agriculture expanded by 3.01%, with positive contributions across all sub-sectors: important crops (1.10%), other crops (2.27%), livestock (3.70%), forestry (1.62%), and fishing (1.37%). Services grew by 4.18%, driven by strong performances in information & communication (9.78%), public administration (8.88%), and wholesale & retail trade (4.13%).
The NAC also revised upward the growth figures for Q1 and Q2 FY26 to 3.92% and 4.05% respectively. For the full fiscal year, provisional GDP growth stands at 3.70%. Final revised growth rates for previous years were set at 2.62% for FY24 and 3.18% for FY25.
These figures reflect improving economic stability amid ongoing reforms and external support, including recent IMF disbursements. Per capita income has risen to $1,901 based on the latest population projections.
Analysts view the industrial rebound, especially in manufacturing, as a positive signal for job creation and investment.
However, challenges like energy shortages in certain segments and the need for broader sectoral diversification remain. The government continues to emphasize digitalization and export-led growth to sustain this trajectory.