Modest gains in GDP, per capita income indicate recovery in output, government says

ISLAMABAD: Pakistan’s gross domestic product (GDP) and per capita income increased in dollar terms at a modest pace, indicating a recovery in the country’s overall output compared to the previous year, the government said on Wednesday. It was revealed that the country’s economy is expected to grow by 3.70 per cent in the current fiscal year, a revision from earlier projections of 4pc, suggesting that Pakistan will fall short of its GDP target. The provisional growth rates in agriculture, industry and services in FY26 are 2.89pc, 3.51pc and 4.09pc, respectively. The 117th meeting of the National Accounts Committee (NAC) was held in the federal capital on Wednesday at the Pakistan Bureau of Statistics Headquarters, Statistics House. The secretary of the Ministry of Planning and Development chaired the meeting. The committee approved the quarterly GDP growth rates for Q1 (revised), Q2 (revised), and Q3 (provisional) during FY 2025-26 and annual growth rates for 2023-24 (final), 2024-25 (revised) and 2025-26 (provisional). The size of the economy went up to $452.1 billion in FY26 from $410.96bn in FY25, mainly driven by growth in the services sector, followed by industry and livestock. The per capita income slightly increased to $1,901 in FY26 from $1,824 in FY25. The projection is on the 2023 population census. However, it was $1,551 in FY23, $1,766 in FY22 and $1,677 in FY21. This suggests a deterioration in the standard of living and well-being across almost all segments of society, with no tangible increase in personal incomes. It may lead to decreased disposable income, limiting individuals’ ability to afford goods and services, save, or invest. Meanwhile, the NAC also approved the updated growth rates for Q1 and Q2 of 2025-26 at 3.92pc and 4.05pc, compared with 3.63pc and 3.89pc, respectively, presented at the 116th meeting of the NAC. The GDP has shown a provisional growth of 3.99pc during Q3 of the fiscal year 2025-26. The final and revised growth rates for FY24