Pakistan’s economy grew by 2.7% with industrial sector increasing by leaps and bounds

ISLAMABAD – The government has recorded a 2.7% economic growth for the fiscal year, as an unforeseen growth of 4.8% in the industrial sector has been registered, concerns still looming regarding the economic policies and operational costs.

Varied Performance in Leading Sectors

Industry Sees Strong Growth

The industrial segment was the main actor in economic performance of this year with 4.8% growth. Notably:

– Gross value added in the generation and distribution of electricity, gas, and water also increased by 39.3%, although there have been reports of reduced electricity generation.

— The construction industry grew 6.6 percent, recovering from periods of heavy taxation and low demand.

Agriculture Faces Setbacks

By contrast agriculture, fell back maintaining a scant overall growth of 0.6 per cent. Major crops suffered:

— Production of wheat was down by 9 percent, and rice fell by 1.4 percent.

— There was a large 31% reduction in cotton production, showing that industry still is struggling.

Economic Difficulties and Growth of the Population

The 2.7% growth in GDP, according to reports, is not much higher than the Pakistan’s population growth of 2.6% which is fanning fears of more poverty and unemployment. What’s more, the government missed its 3.6% GDP growth target.

Official GDP Numbers & Future Prospects

During the 113th meeting of the National Accounts Committee (NAC) which was presided over by Planning Secretary Awais Manzur Sumra, a provisional GDP growth rate of 2.68% for 2024-25 was endorsed.

Some of the important economic indicators are:

- According to reports, per capita income has reached $1,824.

– The size of the economy has grown to $411 billion, up from $371.7 billion last year.

The government says that this pace of growth could be maintained if the economy grows by 5.3% in the April-June quarter – a huge jump from the previous rate of quarterly growth of 2.4%.

Sector-Specific Insights

Agricultural Performance

Despite declines for the major crops, the Planning Ministry reported an increase of 4.8% in other agricultural outputs from potatoes, onions, mangoes and sesame. Meanwhile:

– Ginning of cotton fell 19%.

— Livestock increased 4.72%, and forestry and hunting expanded 3.03%.

Industrial Sector Breakdown

– Although coal production increased 2.84%, the mining and quarrying industry shrank 3.4% because of lower production of natural gas and crude oil.

– Large-scale production decreased by a marginal 1.53%.

— Electricity and power-related industries soared 28.9%, a recovery primarily reflecting a low base from a year earlier.

Services Sector Outlook

The services sector expanded by 2.9%, with significant growth contributions from the:

– Wholesale & retail trade (+0.14%)

- Transport & storage sector (+2.2%)

– Information & communication (+6.5%25)

The education and healthcare industries also saw increases in duration at 4.43% and 3.71%, which is an indication of slower growth.