GDP growth revised down to 3.65pc as country falls short of target

The government has revised Pakistan's gross domestic product (GDP) growth for the past fiscal year (FY26) downward to 3.65 percent, citing a slowdown in the industrial and services sectors. This marks a slight drop from the original projection of 3.70 percent, which was previously revised from an even higher estimate of 4 percent.

The country's GDP expanded to $450.4 billion in FY26, up from $410.96 billion in the previous year, primarily due to growth in the services sector followed by industry and livestock. However, per capita income remains the lowest in the region, at $1,896, according to the new estimates. The National Accounts Committee (NAC) approved the new growth rates during their 118th meeting, which included updated figures for agriculture, industry, and services.

Overall, the updated growth rates in agriculture, industry, and services are 3.50 percent, 3.34 percent, and 3.81 percent, respectively, compared to earlier rates of 2.89 percent, 3.51 percent, and 4.09 percent. The revision aligns Pakistan's growth outlook with that of international lenders, such as the International Monetary Fund, World Bank, and Asian Development Bank, which have projected GDP growth at 3.6 percent, 3.7 percent, and 3.7 percent for FY26, respectively.