ISLAMABAD: The GDP of Pakistan has witnessed a growth of 3.71% in the first quarter (Q1) of the fiscal year 2025-26, and this overtakes the growth of the same quarter in 2024-25 by 2.15%, claimed by Ahsan Iqbal Federal Minister of Planning, Development, and Special Initiatives and Inter Provincial Coordination.
This indicates a drastic alteration in the country’s economic direction in comparison to the earlier financial year, which was marked by economic distress.
Ahsan Iqbal said that during the first quarter of 2024-25, the economy of Pakistan grew at a rate that was noticeably lower than in the previous quarter with the quarterly figures being 1.56%, 2.03%, 2.66%, and at last a sharp 6.17% in the last quarter. Additionally, the Q1 of 2025-26 has more than doubled the growth rate as compared with the same quarter of last year, which indicates the economy’s performance has been positively affected.
Alhamdulillah! Good news is that in Q1 of 2025-26 GDP has grown by 3.71%. This is 2.15% more than the corresponding number of Q1 2024-25. This defines a qualitative change in trajectory of GDP compared to 2024-25. In 24-25, qurterly jouney was 1.56, 2.03, 2.66, and 6.17, In…
— Ahsan Iqbal (@betterpakistan) December 30, 2025
The most remarkable thing about this growth is the industrial sector which has seen an outstanding increase of 9.38% in Q1 of 2025-26. For reference, the industrial growth in Q1 of 2024-25 was only 0.12%. The growth in industrial output is being seen even through the challenges such as the floods of 2025, removal of energy subsidies, and the fiscal contraction measures that were enforced during the year.
He also added that Economists have praised this early growth, claiming it is indicative of the industrial base’s toughness in Pakistan, which is still able to produce despite the inflationary pressures and external shocks. The government’s financial restructurings, which included the removal of energy subsidies and efforts to stabilize prices, have not hindered the recovery process as industrial growth has been recognized as a critical contributor in the positive economic performance.
The fiscal year’s early positive performance fuels the expectation of further increase during the following quarters and assures that the economy of Pakistan is recovering albeit slowly and with difficulties.
ALSO READ: Ahsan Iqbal targets PTI founder: “He’s not prisoner 804, He’s 420”
