Pakistan’s economy recorded a modest growth of 0.92% in the first quarter of the fiscal year 2024-25, driven by gains in the agriculture and services sectors despite a contraction in industrial output, according to data released Monday by the National Accounts Committee and the Pakistan Bureau of Statistics.
The South Asian nation, grappling with economic recovery challenges, has been bolstered by a $7 billion International Monetary Fund (IMF) facility secured in September. The agriculture sector expanded by 1.15%, while the services sector saw a 1.43% increase, helping offset weaknesses elsewhere.
By comparison, Pakistan’s economy grew by 2.69% during the same period in the previous fiscal year, highlighting a significant slowdown in the current period.
A major drag came from the industrial sector, which shrank by 1.03%, primarily due to a downturn in mining and quarrying activities during the July-to-September quarter, the report stated.
The National Accounts Committee also approved new measures to introduce quarterly estimates of economic expenditure, aimed at providing more granular insights into the economy’s performance.
Based on updated national accounts figures, Pakistan’s overall economy was valued at 105.6 trillion Pakistani rupees ($379.31 billion) for the last fiscal year. The annual per capita income stood at 472,263 rupees ($1,696.35).
The committee also revised the annual growth rate for the fiscal year 2023-24 to 2.50%, slightly below the previously reported estimate of 2.52%.
Pakistan’s economic trajectory remains under pressure amid efforts to stabilize after years of fiscal challenges, political instability, and external shocks. Analysts note that while IMF assistance has provided short-term relief, structural reforms and sectoral diversification are essential for sustainable growth.
The contraction in the industrial sector raises concerns about job creation and export competitiveness. Conversely, the positive performance in agriculture and services offers hope for resilience, particularly as the government seeks to enhance productivity and service delivery in these areas.
Economic experts suggest that Pakistan will need to address critical structural issues, such as energy supply disruptions, inflation, and trade imbalances, to achieve more robust growth in the remaining quarters of the fiscal year.
As the fiscal year progresses, stakeholders will closely monitor developments in key sectors and the government’s efforts to navigate the economic challenges facing the nation.
