Pakistan’s economic growth declines to less than 1% economy
Despite the major economic challenges facing Pakistan, the economy achieved growth of 0.92% in the first quarter of the fiscal year 2024-2025, according to data approved by the National Accounts Committee and announced by the Pakistan Statistics Authority on Monday.
According to Reuters, the growth was driven by positive performance in the agriculture and services sectors, which recorded growth of 1.15% and 1.43%, respectively, during the period between July and September.
In contrast, the industrial sector contracted by 1.03% due to a noticeable decline in mining and quarrying activities, according to the agency.
Economic challenges
Pakistan is seeking to achieve economic recovery amid many challenges, and it received support from the International Monetary Fund through a $7 billion facility last September. However, growth in the first quarter was lower than in the same period of the previous fiscal year 2023-2024, when it reached 2.69%.
According to the latest compiled figures, the total size of the Pakistani economy has reached 105.6 trillion Pakistani rupees (equivalent to 379.31 billion dollars). The average annual per capita income was 472,263 Pakistani rupees (about $1,696).
Recent growth estimates
The committee also approved the updated annual growth rate for the fiscal year 2023-2024, which amounted to 2.50%, which is slightly lower than the previous estimate of 2.52%.
The decline in the industrial sector is a major obstacle to achieving higher growth rates, especially in light of the decline in mining and quarrying activities, which highlights the need to enhance investments and improve the business environment to attract more industrial activity, according to Reuters.
