Pakistan’s economy recorded a provisional GDP growth of 3.71% in the first quarter of FY2025-26 (July-September 2025), according to data approved by the National Accounts Committee. The growth was largely propelled by a strong industrial sector expansion of 9.38%, despite headwinds from devastating floods earlier in the year. Agriculture contributed with a 2.89% increase, while the services sector grew modestly at 2.35%. Federal Minister for Planning Ahsan Iqbal emphasized that this performance is remarkable given the absorption of fiscal tightening measures, withdrawal of energy subsidies, and persistent food inflation.
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Resilience Despite Flood Shock
Iqbal highlighted the industrial rebound as a sign of structural improvements and policy effectiveness. “This growth is coming despite the 2025 flood shock,” he stated, underscoring the economy’s resilience. The figures reflect recovery efforts post-floods, with increased activity in manufacturing and construction. Government officials argue that these numbers validate ongoing reforms under the stabilization program, including better revenue collection and external account management. Supporters point to rising foreign reserves and controlled inflation as complementary positives, setting a foundation for sustained recovery in subsequent quarters. The data suggests Pakistan is on track to exceed earlier full-year projections, boosting investor confidence amid global uncertainties.