Pakistan’s economy recorded a 3.89% growth in the second quarter of fiscal year 2025-26 (October to December 2025). This is the highest second-quarter growth in the last four years, according to official data released by the Pakistan Bureau of Statistics (PBS) and approved by the National Accounts Committee.
The industrial sector was the main driver of this growth, expanding by a strong 7.4% compared to just 0.8% in the same period last year. Large-scale manufacturing rose 5.71%, with big jumps in automobile production (53%), transport equipment (41%), and petroleum products (25%). Electricity, gas, and water supply grew 15%, while construction activity also improved.
The services sector grew by 3.69%, supported by public administration and education. However, the agriculture sector showed only modest growth of 1.76%. Crop production actually declined by 1.87%, though livestock performed better at 5.59%.
The first quarter growth was revised slightly downward to 3.63%. As a result, average growth for the first half of FY26 stands at 3.76%, which is broadly in line with government expectations for the full year.
Experts say the industrial recovery is a positive sign, but sustained growth will depend on controlling inflation, managing high fuel prices, and improving agricultural output.
The government hopes this momentum will continue in the coming quarters to create more jobs and support overall economic stability.
| Sector | Q2 FY26 Growth | Q2 FY25 Growth | 1H FY26 Average Growth |
|---|---|---|---|
| Overall GDP | 3.89% | – | 3.76% |
| Industry | 7.40% | 0.80% | 8.10% |
| Services | 3.69% | – | 3.10% |
| Agriculture | 1.76% | 1.72% | 2.20% |
Key Sub-Sectors (Q2 FY26):
- Automobile: +53%
- Large-Scale Manufacturing: +5.71%
- Electricity, Gas & Water: +15%
- Livestock: +5.59%