Pakistan’s Gross Domestic Product (GDP) recorded a growth of 3.71 percent in the first quarter of fiscal year 2025-26, reflecting a notable improvement of 2.15 percent compared to the corresponding quarter of last fiscal year.

According to Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, the growth momentum was primarily driven by a robust performance of the industrial sector, which expanded by 9.38 percent during Q1 FY26, a sharp rise from 0.12 percent growth in the same quarter of FY25.

The minister highlighted that the economic upturn was achieved despite significant challenges, including the impact of the 2025 floods, fiscal tightening measures, withdrawal of energy subsidies, and persistent food inflation. He described the latest figures as a qualitative shift in Pakistan’s GDP trajectory.

Ahsan Iqbal further noted that the first quarter growth of FY26 more than doubled the performance of the comparable quarter in FY25, when quarterly growth stood at 1.56 percent, underscoring improving economic resilience and industrial revival.