Pakistan’s economy has registered a robust start to the fiscal year 2026, posting a Gross Domestic Product (GDP) growth rate of 3.71% in the first quarter (July-September). The figure, announced by Federal Minister for Planning Ahsan Iqbal, marks a significant acceleration of 2.15 percentage points compared to the 1.56% growth recorded in the same quarter of the previous fiscal year.
Minister Iqbal, in a social media post, hailed the data as representing a “qualitative change” in the country’s economic trajectory. He particularly emphasized the stellar performance of the industrial sector, which surged by 9.38% in Q1 FY2026—a dramatic rise from a near-stagnant growth of 0.12% in Q1 FY2025. This industrial rebound is seen as a key driver of the overall economic improvement.
The minister underscored that this growth was achieved despite significant headwinds, including the economic shock from the 2025 floods, the absorption of fiscal tightening measures, the withdrawal of energy subsidies, and persistent food inflation.
Alhamdulillah! Good news is that in Q1 of 2025-26 GDP has grown by 3.71%. This is 2.15% more than the corresponding number of Q1 2024-25. This defines a qualitative change in trajectory of GDP compared to 2024-25. In 24-25, qurterly jouney was 1.56, 2.03, 2.66, and 6.17, In…
— Ahsan Iqbal (@betterpakistan) December 30, 2025
The positive first-quarter data follows an overall GDP growth of 3.04% for the entire previous fiscal year (FY2025), as estimated by the Pakistan Bureau of Statistics (PBS). This final figure was higher than an earlier projection of 2.68%. The National Accounts Committee (NAC) reported that the size of the Pakistani economy reached Rs113.7 trillion ($407.2 billion) in FY2025, up from Rs105.2 trillion ($371.8 billion) the year before. Per capita income was recorded at Rs506,188 ($1,812).
The strong Q1 numbers will likely be welcomed by the government as evidence that its economic stabilization policies are yielding results, setting a more optimistic tone for the full fiscal year’s targets.
