2 min read

Pakistan achieves mere 0.92 per cent GDP growth in Q1 FY25

December 31, 2024 1:51 am

Pakistan achieves mere 0.92 per cent GDP growth in Q1 FY25

WEB DESK: Pakistan’s economy recorded GDP growth of 0.92 per cent in the first quarter of FY 2024-25 (1QFY25), as per the latest figures released by the Pakistan Bureau of Statistics (PBS). The agriculture and services sectors showed resilience, while the industrial sector struggled with a contraction.

Sectoral performance: key highlights

Agriculture posted a growth of 1.15 per cent, led by livestock, which surged by 4.89 per cent, an improvement from last year’s 4.56 per cent. However, important crops contracted by 11.19 per cent, driven by reduced output of cotton (-29.6 per cent), maize (-15.6 per cent), rice (-1.2 per cent), and sugarcane (-2.2 per cent). Forestry declined sharply by -0.89 per cent due to lower timber production.
Services grew by 1.43 per cent, supported by improvements in transport (2.12 per cent), information and communication (3.45 per cent), education (9.05 per cent), and health (5.99 per cent). Despite this, transportation and public administration contracted slightly, impacting overall growth.
Industry contracted by 1.03 per cent, with notable declines in mining and quarrying (-6.49 per cent) and construction (-14.91 per cent). Cement production, a key indicator, dropped by 16.12 per cent.

Economic size and per capita income

The overall size of Pakistan’s economy now stands at Rs105.6 trillion (US$ 373.3 billion). Per capita income has been recorded at Rs472,263 (US$ 1,669), subject to revision pending population projections from the 2023 Census.

Revised FY24 growth estimates

PBS revised FY24 GDP growth to 2.5 per cent, down from an earlier estimate of 2.5 per cent. This adjustment reflects ongoing challenges in the industrial and agricultural sectors.

Detailed observations

Services: Growth was moderated by strong contributions from wholesale and retail trade, accommodation, real estate, and education.

Crops: Other crops grew by 2.08 per cent compared to last year’s contraction of -2.08 per cent, driven by improved input availability. Wheat remains unaffected in Q1 as it falls outside the sowing and harvesting seasons.

Livestock: Gains in livestock products and reduced input costs like dry fodder boosted the sector.

Industry: The contraction rate eased compared to Q1 FY24 (4.43 per cent) but remains a concern due to falling mining output (e.g., coal: -12.4 per cent, gas: -6.7 per cent, crude oil: -19.8 per cent).