Pakistan GDP Growth Rate
The Government of Pakistan has officially revised the country’s GDP growth rate for fiscal year 2024–25 to 3.04%, slightly higher than earlier projections. The revised figure reflects better-than-expected performance in agriculture and services, though challenges in manufacturing and trade continue to weigh on overall growth.
Key Highlights
| Indicator | Previous Estimate | Revised Figure (FY25) |
|---|---|---|
| GDP Growth Rate | 2.8% | 3.04% |
| Agriculture Growth | 4.2% | 4.6% |
| Services Sector | 3.1% | 3.4% |
| Industry/Manufacturing | 1.9% | 1.7% |
| Inflation (CPI) | 21% | 19% (slight improvement) |
Why the Revision?
- Strong Agriculture Output – Higher production of wheat, rice, and maize boosted rural incomes and food supply.
- Resilient Services Sector – Banking, telecom, and IT exports showed steady growth despite economic pressures.
- Policy Measures – Stabilization steps by the government, including better tax collection and controlled imports, contributed to modest improvements.
- Inflation Control – A decline in fuel prices and stronger rupee helped ease inflationary pressures slightly.
Sector-Wise Analysis
- 🌾 Agriculture: Contributed the most to growth, as bumper wheat crops and improved irrigation supported farmers.
- 🏭 Industry: Struggled due to energy shortages, high input costs, and weak consumer demand. Textile exports showed mixed trends.
- 💻 Services: Digital payments, IT exports, and logistics saw expansion, creating jobs and supporting urban growth.
Challenges Ahead
Despite the upward revision, Pakistan faces serious structural and external challenges:
- High external debt servicing obligations
- Limited foreign reserves
- Persistent energy shortages
- Inflation still well above comfort levels
- Sluggish investment climate
Government’s Outlook
Officials from the Ministry of Finance said the revised 3.04% growth shows “Pakistan is on the path to gradual recovery.” However, they emphasized the need for continued reforms in taxation, energy pricing, and export diversification to sustain higher growth in coming years.
Economists argue that unless structural issues are addressed, Pakistan’s growth will remain modest compared to regional peers such as India and Bangladesh.
Final Takeaway
The revision of Pakistan’s GDP growth to 3.04% in FY25 signals cautious optimism. While agriculture and services are helping push the economy forward, weak industry and external vulnerabilities continue to limit stronger growth.
For ordinary citizens, the impact is mixed: while food supply improvements bring some relief, high inflation and job market challenges remain pressing concerns.
Related Posts
