ISLAMABAD: Pakistan’s economy grew 3.65% in fiscal year 2026, slightly below the preliminary estimate of 3.70%, according to revised national accounts estimates approved by the National Accounts Committee.
The committee, chaired by the secretary of the Ministry of Planning, Development and Special Initiatives, met at the Pakistan Bureau of Statistics headquarters in Islamabad for its 118th session. It also revised GDP growth for FY25 to 3.11% from 3.18%.
The revised estimates place the size of Pakistan’s economy at 126.4 trillion rupees, equivalent to $450.4 billion, in FY26, up from 114.9 trillion rupees ($408.7 billion) in FY25. Per capita income reached 531,897 rupees, or $1,896, during the year.
Sector-wise, agriculture grew 3.50% in FY26, services 3.81% and industry 3.34%.
Agriculture’s growth was revised up from a previous estimate of 2.89%, driven by improvements in important crops, which grew 1.59% versus an earlier estimate of 0.65%, and other crops, which grew 4.28% compared with 2.43%. The improvement in other crops reflected higher production of pulses, fruits, tomatoes, oilseeds and green fodder. Livestock growth was revised slightly downward to 3.71% from 3.75%.
Industrial growth was revised down from 3.51%, affected by a downward revision in large-scale manufacturing growth to 5.01% from 6.11%. Mining and quarrying growth improved to 1.52% from 0.38%, while construction growth rose to 6.30% from 5.73%, supported by higher public-sector construction expenditure.
Among manufacturing groups, automobiles recorded growth of 57.77%, followed by transport equipment at 42.36%, furniture at 22.69%, electrical equipment at 14.25%, rubber products at 14.19%, tobacco at 12.61%, petroleum products at 9.70% and food at 7.03%. Pharmaceuticals contracted 8.87%, iron and steel products 7.84%, chemicals 2.53% and leather products 1.95%.
Electricity, gas and water supply continued to weigh on industrial activity, contracting 10.24% in FY26, though the decline was narrower than the previously estimated 10.63%.
In services, wholesale and retail trade growth was revised to 2.37% from 3.71%, reflecting lower manufacturing and imports. Transportation and storage growth improved to 3.23% from 2.31%, while information and communication growth increased to 9.53% from 7.52%. Financial and insurance activities recorded stronger growth of 4.23%, compared with the previous estimate of 0.32%. Public administration and social security grew 5.67%, education 4.17% and human health and social work activities 5.52%.
The committee also approved revised quarterly GDP growth estimates for the first three quarters of FY26. Growth in the first quarter was adjusted slightly downward to 3.89% from 3.92%, while second-quarter growth was revised upward to 4.31% from 4.05% and third-quarter growth to 4.42% from 3.99%.
The economy recorded 2% growth in the fourth quarter of FY26, compared with 6.07% in the corresponding quarter of the previous fiscal year, reflecting a high base effect. During the fourth quarter, agriculture grew 3.71% and services expanded 3.62%, while industry contracted 4.70%, compared with growth of 20% in the same quarter last year.
Within industry, mining and quarrying grew 8.90%, large-scale manufacturing 0.41% and construction 3.52%. Electricity, gas and water supply contracted 33.19%, attributed to lower subsidies, a high deflator and the exceptionally high base effect of 123.03%.
In services, information and communication led growth with an expansion of 15.03%, followed by health and social work activities at 6.14%, public administration and social security at 5.46% and other private services at 4%.
The committee approved the revised estimates incorporating updated import data for FY21 to FY25, alongside revised quarterly and annual GDP growth figures for FY25 and FY26.
