Pakistan’s economy expanded by 3.9% in the second quarter (Q2) of the current fiscal year, official data shows, marking a stronger‑than‑expected upswing from earlier in the year.
The growth pickup was led by improved performance in the industrial and services sectors, signalling a broad‑based recovery in economic activity across key segments.
Sector Contributions to Growth
The industrial sector recorded robust output, driven by manufacturing, construction, and electricity generation, which helped lift overall economic performance.
Meanwhile, the services sector, including trade, transport, and finance, also showed solid growth, reflecting rising domestic demand and activity.
Agriculture maintained modest gains but was not the primary driver of the Q2 increase.
Better Performance Than Previous Quarters
Compared with the first quarter, which posted slower growth, the Q2 expansion demonstrates upward momentum as economic conditions stabilise.
Analysts say the stronger showing reflects improved market sentiment, rising business activity and supportive fiscal policies.
Consumer demand and investment activity have also shown signs of resurgence following earlier economic headwinds.
Broader Recovery Signals
The growth acceleration suggests Pakistan’s economy may be regaining traction despite ongoing challenges, including global uncertainties and inflationary pressures.
Policymakers and economists welcomed the higher growth figure as a positive signal that recent reforms and stabilisation efforts are beginning to yield results.
However, economists also caution that sustaining this level of growth will require continued structural improvements and investment in key sectors.
Outlook and Risks
Despite the better‑than‑expected performance, challenges remain. External factors such as global energy prices, exchange rate volatility, and geopolitical tensions could still influence the outlook.
Domestic concerns like credit availability, fiscal constraints, and structural bottlenecks also pose risks to sustained growth.