There is encouraging news on the economic front as Pakistan’s GDP has grown by 3.71% in Q1 of 2025–26. This marks a 2.15% improvement over the same quarter of 2024–25, clearly indicating a positive and qualitative shift in the country’s economic trajectory.
Looking back at FY 2024–25, the quarterly GDP growth pattern stood at 1.56%, 2.03%, 2.66%, and 6.17%. In comparison, the start of 2025–26 is more than double the growth rate of the comparable quarter last year, signaling renewed momentum early in the fiscal year.
What makes this growth even more encouraging is its source. The expansion is largely driven by industrial growth, which has reached an impressive 9.38% in Q1 2025–26, compared to a modest 0.12% in Q1 2024–25. This reflects improving industrial activity, capacity utilization, and confidence within the productive sectors of the economy.
Importantly, this progress has been achieved despite significant challenges, including the 2025 flood shock, ongoing fiscal tightening, energy subsidy withdrawal, and persistent food inflation. The resilience shown under such conditions highlights improving economic fundamentals and a potential path toward sustainable recovery.
Overall, this strong start offers hope, confidence, and cautious optimism for the remainder of the fiscal year.