Pakistan’s economy has shown modest signs of recovery, with GDP and per capita income increasing in dollar terms during fiscal year 2025–26, according to the government. Officials said the improvement reflects a gradual rebound in overall economic output compared to the previous year. However, growth remains below earlier projections, indicating continued economic pressure.
The National Accounts Committee estimated GDP growth at 3.70 percent for FY26, revising earlier expectations of 4 percent. The revised figures suggest that Pakistan will miss its original growth target. The economy’s size rose to 452.1 billion dollars, supported mainly by the services sector, followed by industry and agriculture.
Read more: Pakistan economy expands to $452 billion with steady growth
Meanwhile, per capita income increased slightly to 1,901 dollars from 1,824 dollars in the previous fiscal year. Officials noted that earlier figures showed lower income levels, highlighting uneven long-term improvements in living standards. Analysts say the modest rise may still limit household purchasing power and savings capacity.
Sector-wise data shows mixed performance across the economy. Agriculture recorded slow growth of 2.89 percent, while industry grew by 3.51 percent and services expanded by 4.09 percent. Large-scale manufacturing showed stronger gains, but energy-related sectors faced contraction during the period.
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Overall, the government described the trend as a recovery phase rather than strong expansion. While key sectors showed improvement, challenges such as missed targets and weak income growth persist. Economists say sustained reforms will be needed to maintain stability and accelerate long-term growth.