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Pakistan Reports 3.71% Q1 FY2026 Growth on Industrial Rebound

The government now forecasts full-year growth above 4%, citing broader macroeconomic stabilization.

Overview

  • Official data show industry expanded 9.38% in Q1 FY2026, with agriculture up 2.89% and services 2.35%.
  • The NAC also lifted FY2024–25 growth to 3.09% and put the economy at Rs113.93 trillion ($407.9 billion) with per-capita income at $1,814.
  • The Finance Ministry’s December update points to continued LSM recovery, a 5.5–6.5% December inflation range and a current account within target.
  • Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb highlight falling inflation to 4.5%, stronger reserves to $21.2 billion and project growth above 4%, with 16 IPOs expected in 2026.
  • A Gallup Pakistan survey finds 51% expect a better 2026 and 53% foresee economic improvement, even as flood impacts and some economists’ skepticism underscore ongoing risks.