Islamabad – March 24, 2025:
Pakistan’s economy posted a 1.73% GDP growth in the second quarter (October–December) of fiscal year 2024-25, according to the latest data released by the Pakistan Bureau of Statistics (PBS). The growth, though modest, reflects a notable rebound in the services and agriculture sectors, even as the industrial sector continued to show signs of strain.
The figures were finalized during the 112th meeting of the National Accounts Committee (NAC), held at the Statistics House in Islamabad. The committee also revised the first-quarter growth figure upward from 0.92% to 1.34%, citing improved performance in services and a less severe industrial contraction.
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Agriculture Sector Shows Mixed Results
While the agriculture sector grew by 1.10%, the overall performance was weighed down by a 5.38% drop in crop production, largely due to a 7.65% decrease in key crops. Notably, cotton production plunged 30.7%, from 10.22 million to 7.084 million bales. Maize production also declined by 15.4%, with smaller dips seen in rice (1.4%) and sugarcane (2.3%).
The wheat crop, not previously included in Q1 estimates, saw a 6.8% decline in cultivated area compared to last year. However, growth in other crops (0.73%) and a 14.2% rise in potato cultivation offered some relief. Livestock surged 6.51%, benefiting from reduced fodder costs, while forestry declined by 0.64% and fishing grew 0.79%.
Industrial Sector Continues to Struggle
The industrial sector contracted by 0.18%, although the decline was less severe than the 1.81% drop during the same quarter last year. The mining and quarrying segment fell 3.29%, with decreases in coal (-6.34%), natural gas (-6.16%), and crude oil (-11.4%) production.
Large-scale manufacturing shrank 2.86%, with significant declines in sugar (-12.63%), cement (-1.82%), and iron and steel (-17.86%). However, growth in electricity, gas, and water supply (7.71%) helped offset some of the industrial losses, driven by increased gas production and reduced deflator values. The construction sector, meanwhile, saw a steep 7.14% contraction.
Services Sector Powers Economic Growth
The services sector remained the strongest contributor, recording a 2.57% growth, up from 1.32% in the same quarter last year. Despite a 1.13% dip in wholesale and retail trade, strong performances in finance and insurance (10.21%), information and communication (8.45%), public administration (9.10%), and health (6.60%) fueled the overall increase.
Additional support came from transportation and storage (1.15%), education (4.80%), accommodation and food services (4.45%), real estate activities (4.12%), and private sector services (3.14%).
Recognition of National Statistical Efforts
The NAC acknowledged the efforts of the National Accounts team at PBS, in collaboration with the Ministry of Planning, Development and Special Initiatives, the Ministry of Finance, and the State Bank of Pakistan, for their role in producing accurate and timely GDP estimates.
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