Pakistan’s Gross Domestic Product (GDP) grew by 2.7 percent in the fiscal year 2024–25, falling short of the 3.6 percent target, according to the working paper for the Annual Planning Coordination Committee (APCC). The shortfall was primarily attributed to a sharp 13.5 percent decline in major crops such as cotton, which dropped by 30.7 percent, and wheat, which fell by 8.9 percent due to erratic weather and input-related challenges.
Despite the agricultural downturn, the industrial sector rebounded strongly with a 4.8 percent growth. This was driven by a significant 28.9 percent increase in the electricity, gas, and water supply segment, along with a 6.6 percent rise in the construction sector. However, large-scale manufacturing remained in contraction, declining by 1.5 percent due to weak demand in key industries like chemicals and steel.
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The services sector showed modest improvement, growing by 2.9 percent compared to 2.2 percent the previous year. This growth was fueled by notable performances in public administration (9.9 percent), information and communication technology (6.5 percent), and finance (3.2 percent).
Looking ahead, the government forecasts a GDP growth of 4.2 percent for FY2025–26, expecting a rebound in agriculture and manufacturing and continued strength in services.
