Despite a contraction of 0.18% in the industrial sector, Pakistan’s gross domestic product (GDP) grew by 1.73% in the second quarter (October-December) of fiscal year 2024-25, according to estimates released by the Pakistan Bureau of Statistics (PBS).
The National Accounts Committee (NAC) also revised the first quarter GDP growth for FY2023-24 to 1.34% from the previous estimate of 0.92%. This revision followed upward adjustments in the services sector, which grew by 2.21% instead of the previously reported 1.43%, and an improvement in the industrial sector, which saw a decline of 0.66% instead of the earlier forecasted -1.03%.
During Q2 of FY2024-25, agriculture and services posted growth rates of 1.1% and 2.57%, respectively. The crops sector contracted by 5.38%, with significant reductions in cotton, maize, rice, and sugarcane production. Cotton production dropped by 30.7%, while maize, rice, and sugarcane saw declines of 15.4%, 1.4%, and 2.3%, respectively.
Additionally, the area planted with wheat decreased by 6.8% compared to last year.
The industrial sector’s contraction slowed from 1.81% in Q2 of FY2023-24 to 0.18% in the same period of FY2024-25. Mining and quarrying activities contracted by 3.29% due to low production levels, while large-scale manufacturing (LSM), as measured by the Quantum Index of Manufacturing (QIM), fell by 2.86%. Key industries contributing to the decline included sugar, cement, and iron and steel.
The services sector experienced growth of 2.57% in Q2 FY2024-25, up from 1.32% in the same period last year. NAC attributed the growth in services to the slowdown in consumer price index-based inflation, which helped industries like information, communication, finance, insurance, and public administration achieve positive contributions.
