Pakistan GDP Grows 0.92% in Q1 FY25

Pakistan's economy experienced a modest growth of 0.92% in the first quarter of the fiscal year 2024-25, significantly down from the previous year's 2.5%. This growth was primarily driven by the agricultural sector, which expanded by 1.15%, and the services sector, which grew by 1.43%, despite a 1.03% contraction in the industrial sector. Major crops faced substantial declines, particularly cotton and maize, contributing to an overall agricultural contraction of 5.93%. The National Accounts Committee has revised the previous fiscal year's growth rate to 2.50%, reflecting downward adjustments across various sectors, particularly in industry and forestry. However, the Finance Ministry's outlook indicates a positive trajectory with declining inflation, increased exports, and robust remittances in the early months of FY25. Despite short-term challenges, projections for GDP growth in FY25 range from 2.5% to 3.0%, supported by improvements in services and investment.