Economic growth rate 2%, industrial sector shrinks 4.7%

Increase of $14.8 billion in import figures during 5 fiscal years

Islamabad: Pakistan's economic growth rate decreased to 2 percent in last quarter (April to June) of last fiscal year 2025-26, basic reason of which is 4.7 percent contraction in industrial sector.

Government has increased total $14.8 billion by revising import figures of last five fiscal years.

According to Pakistan Bureau of Statistics, National Accounts Committee (NAC) in its 118th meeting approved new figures of fourth quarter growth rate and revised data of imports.

According to Committee, due to high growth rate of 6.1 percent in same quarter of last year, pace of growth remained limited in relevant quarter of current year.

After revision, annual growth rate of fiscal year 2024-25 was also fixed with slight decrease at 3.65 percent.

According to PBS, agricultural sector grew 3.7 percent in last quarter of last fiscal year, 2.2 percent increase was recorded in production of important crops, in which improvement in annual estimates of wheat, rice and sugarcane played role.

Growth of industrial sector decreased 4.7 percent, while in same quarter of last year this sector had recorded 20 percent growth, government has termed one reason of this decrease as unusually high growth rate of last year.

According to report, ongoing measures for fiscal stability, reduction in subsidy on energy, regional tension and increase in fuel prices also affected demand of economy and formal industrial activities.

Mining and minerals sector increased 8.9 percent, 11.73 percent increase in gas production, 22.20 percent in oil and 8.17 percent increase in coal production was recorded, large-scale industrial production grew only 0.41 percent, while in same period last year this rate was 2.97 percent.

Electricity, gas and water supply sector decreased 33.2 percent? Actually 2.33%, while construction sector recorded 3.52 percent growth due to higher cement production and government development expenditures. Services sector grew 3.62 percent in last quarter.

Despite decrease in import activities wholesale and retail trade increased 0.75 percent, while growth of transport and storage sector remained 3.3 percent. National Accounts Committee approved revision in import figures from fiscal year 2020-21 to 2024-25.

According to PBS, basic reason for change is transition from Pakistan Revenue Automation Limited system to compiling import data through Pakistan Single Window, under which more comprehensive information became available.

Daily Express Tribune had pointed out difference in import figures last year, after which government and International Monetary Fund reviewed data. Initially decrease of about $11 billion in import figures of two fiscal years was identified.