Pakistan's Economy Makes a Solid Comeback with 2.4% Growth in Q1 2025

In a striking display of resilience, Pakistan’s economy recorded a significant growth of 2.4% year-on-year in the first quarter of 2025. This leap in economic performance is especially noteworthy as it comes on the heels of a modest 1.5% expansion in the previous quarter.

Revival of the Services Sector

Central to this economic boost was the vibrant services sector, which saw a 4% rise in growth. A notable performer within this sector was the Information and Communication Technology (ICT) industry, which experienced a remarkable surge of 18.4%, outperforming its previous quarter’s rate of 8.7%. The growth repercussion extended to wholesale and retail trade, navigating from a downturn to a 1.6% increase. Public administration also showcased a significant leap, advancing to a 13.7% growth rate.

Agricultural Renaissance

Another brighter corner of the economy was the agriculture sector, as it expanded by 1.2%. Key to this rise was an upturn in forestry output, which grew from 3.2% to 4.3%, providing a sturdy backbone to the sector’s revival.

Struggles of the Industrial Sector

However, the industrial sector faced hurdles, contracting by 1.1%. The decline was primarily due to challenges in mining and quarrying, which plummeted to a -4% drop. Yet, there was a silver lining with manufacturing, which strengthened to a 1.6% growth.

Economic Outlook

This multi-faceted growth paints a promising picture of Pakistan’s economy’s potential to rebound and thrive despite enduring challenges. It reflects the dynamism and adaptability of the nation’s core economic sectors, poised to capitalize on future opportunities.

As stated in TradingView, Pakistan’s Q1 performance could set a hopeful trajectory for sustained economic prosperity in the ensuing quarters of 2025.