Pakistan’s GDP grows 3.71% in Q1 FY2026

Publishing date: 30 December 2025

Published in: Daily Times

Pakistan posted a GDP growth of 3.71% in the first quarter of FY2026, said Federal Minister Ahsan Iqbal. The growth comes despite the 2025 flood shock, fiscal tightening, energy subsidy removal, and rising food inflation. Iqbal called it a qualitative change in the country’s economic trajectory.

The minister highlighted that industrial growth was a key driver, rising to 9.38% in Q1 FY2026 compared to just 0.12% in the same period last year. He said this indicates a strong recovery in manufacturing and industrial sectors despite external and domestic challenges.

In FY2025, Pakistan’s GDP grew 3.04%, higher than the 2.68% estimate by the National Accounts Committee (NAC). The Pakistan Bureau of Statistics released the updated figures, reflecting steady progress amid economic pressures.

The overall size of the economy in FY2025 stood at Rs113.7 trillion ($407.2 billion), up from Rs105.2 trillion ($371.8 billion) in FY2024. Per capita income also rose to Rs506,188 ($1,812), showing incremental improvement in average earnings.