Pakistan’s economy grew by 3.65 percent in the fiscal year 2025-26, slightly below the earlier estimate, as stronger agricultural output and gains in several industrial and services activities helped support growth.
The revised figures, approved by the National Accounts Committee (NAC), put annual gross domestic product (GDP) growth at 3.65 percent, down from the previous estimate of 3.70 percent. The economy expanded by 2 percent in the fourth quarter of FY26.
The size of the economy reached Rs126.4 trillion, equivalent to $450.4 billion, compared with Rs114.9 trillion, or $408.7 billion, a year earlier. Per capita income rose to Rs531,897, equivalent to $1,896, during the year.
The committee also revised economic growth for FY25 to 3.11 percent from its earlier estimate of 3.18 percent.
The latest estimates show a mixed picture across the economy, with agriculture performing better than previously expected, while revisions to manufacturing and trade pulled down growth estimates for industry and services.
Agriculture performs better than expected
Agriculture grew by 3.50 percent in FY26, up from the earlier estimate of 2.89 percent, supported by improved output from important crops and a stronger performance by other crops.
Growth in important crops was revised to 1.59 percent from 0.65 percent, while other crops expanded by 4.28 percent, compared with the previous estimate of 2.43 percent.
The improvement in other crops reflected higher production of pulses, fruits, tomatoes, oilseeds and green fodder. Livestock, another major component of the agricultural sector, grew by 3.71 percent, slightly below the earlier estimate of 3.75 percent.
Industry faces pressure from manufacturing and utilities
Industrial growth was revised down to 3.34 percent from 3.51 percent, largely because large-scale manufacturing performed below earlier expectations.
Growth in large-scale manufacturing was lowered to 5.01 percent from 6.11 percent, tempering the sector’s overall performance.
However, not all industrial activities lost momentum. Mining and quarrying growth was revised up to 1.52 percent from 0.38 percent, while construction grew by 6.30 percent, compared with the previous estimate of 5.73 percent. Higher public-sector construction spending supported the improvement.
Manufacturing performance varied sharply between industries. Automobile production led the gains, growing by 57.77 percent, followed by transport equipment at 42.36 percent and furniture at 22.69 percent.
Electrical equipment grew by 14.25 percent, rubber products by 14.19 percent and tobacco by 12.61 percent. Petroleum products recorded growth of 9.70 percent, while food manufacturing expanded by 7.03 percent.
Several industries, however, remained under pressure. Pharmaceutical production contracted by 8.87 percent, while iron and steel products fell by 7.84 percent. Chemicals declined by 2.53 percent and leather products by 1.95 percent.
Electricity, gas and water supply also continued to weigh on industrial activity, contracting by 10.24 percent. The decline was slightly narrower than the previously estimated 10.63 percent.
Services growth revised lower
The services sector grew by 3.81 percent in FY26, below the earlier estimate of 4.09 percent, as weaker growth in wholesale and retail trade offset stronger performances in several other activities.
Wholesale and retail trade growth was revised down to 2.37 percent from 3.71 percent. The revision reflected weaker activity linked to manufacturing and imports.
Transportation and storage, meanwhile, performed better than previously estimated, with growth revised up to 3.23 percent from 2.31 percent.
Information and communication also recorded stronger growth of 9.53 percent, compared with the earlier estimate of 7.52 percent, highlighting continued expansion in the sector.
Financial and insurance activities posted one of the sharpest upward revisions. Growth reached 4.23 percent, against the previous estimate of just 0.32 percent.
Other services also recorded positive growth. Public administration and social security expanded by 5.67 percent, education by 4.17 percent, and human health and social work activities by 5.52 percent.
Overall, the revised national accounts show that Pakistan maintained economic growth in FY26, although the final estimate came in slightly below the earlier projection. Better agricultural performance and gains in construction, transport and communications helped support the economy, while weaker manufacturing and trade growth limited the overall expansion.
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