Pakistan’s Economy Exceeds $410 Billion for First Time
- Sara Habib
- June 10, 2025
- 11:08 am
- 39
- Current Affairs
Pakistan economic growth has reached a new high. The country’s economy has crossed the $410 billion mark for the first time. This is a big step forward. However, it came with some mixed results. While some sectors performed well, others fell short of targets.
Industrial Sector Beats Expectations
The industrial sector grew by 4.8%, which was higher than the target of 4.4%. This was one of the brighter areas in the economy. Sectors like construction and utilities helped drive this growth. Their strong performance gave a much-needed boost to the overall economy.
Agriculture and Services Fall Behind
Even though industry grew, agriculture did not meet its goal. It only grew by 0.6%, while the target was 2%. Major crops like cotton, maize, and wheat had lower production.
Similarly, the services sector grew by 2.9%, which was also below the 4.1% target. These two sectors pulled down the overall performance.
GDP Growth Slower Than Target
Pakistan’s GDP growth was 2.7%, lower than the 3.6% target. But there is some good news. Inflation stayed at 5%, which is much better than the 12% forecast. This is a relief for the general public. It also shows some control over prices.
Improvement in Tax Collection
The government collected Rs13,367 billion in revenue. That’s a 36.7% increase from last year. Out of this, Rs8,393 billion came from indirect taxes like sales tax and customs duties. The tax-to-GDP ratio also rose from 6% to 8%.
This shows better tax collection and improved efficiency.
What’s Next for the Economy?
Finance Minister Muhammad Aurangzeb will present the 2025–26 budget on June 10. Talks with the IMF are still ongoing. These decisions will play a big role in shaping Pakistan’s future economy.
