ISLAMABAD: Pakistan’s economy grew by 3.65% in fiscal year 2026, slightly below the previously estimated 3.70%, according to updated national accounts estimates approved by the National Accounts Committee.
The revised estimates place the size of Pakistan’s economy at 126.4 trillion rupees, equivalent to $450.4 billion, in FY26, compared with 114.9 trillion rupees ($408.7 billion) in FY25. Per capita income reached 531,897 rupees, or $1,896, during the year.
The committee also revised GDP growth for FY25 down to 3.11% from the earlier estimate of 3.18%. GDP growth stood at 2% in the fourth quarter of FY26, compared with 6.07% in the corresponding quarter of the previous fiscal year, reflecting a high base effect.
Sector-wise, agriculture grew by 3.50% in FY26, up from the previous estimate of 2.89%. Industrial growth was revised downward to 3.34% from 3.51%, while services growth declined to 3.81% from 4.09%.
Within agriculture, growth in important crops improved to 1.59% from 0.65%, while other crops recorded growth of 4.28%, compared with the earlier estimate of 2.43%. The improvement in other crops reflected higher production of pulses, fruits, tomatoes, oilseeds and green fodder. Livestock growth was revised slightly downward to 3.71% from 3.75%.
Industrial growth was affected by a downward revision in large-scale manufacturing growth to 5.01% from 6.11%. However, mining and quarrying growth improved to 1.52% from 0.38%, while construction growth increased to 6.30% from 5.73%, supported by higher public-sector construction expenditure.
Among manufacturing groups, automobiles recorded growth of 57.77%, followed by transport equipment at 42.36%, furniture at 22.69%, electrical equipment at 14.25%, rubber products at 14.19%, tobacco at 12.61%, petroleum products at 9.70% and food at 7.03%. In contrast, pharmaceuticals contracted by 8.87%, iron and steel products by 7.84%, chemicals by 2.53% and leather products by 1.95%.
Electricity, gas and water supply continued to weigh on industrial activity, contracting by 10.24% in FY26, although the decline was narrower than the previously estimated 10.63%.
In the services sector, wholesale and retail trade growth was revised to 2.37% from 3.71%, reflecting lower manufacturing and imports. Transportation and storage growth improved to 3.23% from 2.31%, while information and communication growth increased to 9.53% from 7.52%. Financial and insurance activities also recorded stronger growth of 4.23%, compared with the previous estimate of 0.32%. Public administration and social security grew by 5.67%, education by 4.17%, and human health and social work activities by 5.52%.
The committee also approved revised quarterly GDP growth estimates for the first three quarters of FY26. Growth in the first quarter was adjusted slightly downward to 3.89% from 3.92%, while second-quarter growth was revised upward to 4.31% from 4.05% and third-quarter growth to 4.42% from 3.99%.
During the fourth quarter, agriculture grew by 3.71%, while services expanded by 3.62%. Industry contracted by 4.70%, compared with growth of 20% in the same quarter last year. Within industry, mining and quarrying grew by 8.90%, large-scale manufacturing by 0.41% and construction by 3.52%. Electricity, gas and water supply contracted by 33.19%, attributed to lower subsidies, a high deflator and the exceptionally high base effect of 123.03%.
In services, information and communication led growth with an expansion of 15.03%, followed by health and social work activities at 6.14%, public administration and social security at 5.46%, and other private services at 4%.
The 118th National Accounts Committee meeting was held at the Pakistan Bureau of Statistics headquarters in Islamabad under the chairmanship of the secretary of the Ministry of Planning, Development and Special Initiatives. The committee approved revised national accounts estimates incorporating updated import data for FY21 to FY25, alongside revised quarterly and annual GDP growth figures for FY25 and FY26.
