Pakistan’s economy grew 1.73pc in 2nd quarter, says govt

The government said on Wednesday the country’s GDP growth rate was 1.73 per cent in the second quarter of the current financial year ending on June 30 and upgraded its estimate for the previous quarter.

The government’s National Accounts Committee said in a statement that Pakistan had revised the first quarter real GDP estimate up to 1.34pc from earlier estimates of 0.92pc due to higher-than-expected growth in the services sector.

The announcement came just hours after International Monetary Fund (IMF) staff reached a deal with the government for new $1.3 billion financing and praised the country’s progress on boosting macroeconomic stability.

The country’s central bank said its full-year GDP growth target was 2.5pc to 3.5pc and that it expected economic activity to gain further momentum.

Arif Habib Limited. in a report, noted that economy continued “to move forward, demonstrating resilience despite sectoral variations”, attributing it to NAC’s latest GDP figures.

It highlighted that the agriculture and services sectors continued to support economic expansion, while industrial recovery remained a challenge.

“In 2QFY25, the agriculture sector posted a 1.10pc year-on-year (YoY) growth, and services expanded by 2.57pc YoY,” it said, adding, however the industrial sector had contracted

However, it added that the industrial sector had contracted by 0.18pc YoY, highlighting the need for targeted policy interventions.

“Looking ahead, we expect FY25 GDP growth to reach 2.75pc, with the services sector leading the way,” the report said.

According to Topline Securities, a brokerage firm in Karachi, the growth rate for 1QFY25 was revised up to 1.34pc from earlier estimates of 0.92pc.

“The 1HFY25 growth averages at 1.54pc compared to 2.33pc in 1HFY24,” it said.