Pakistan’s Economy Crosses $400 Billion Mark for the First Time

Pakistan’s Economy Surpasses $400 Billion Mark for the First Time

Pakistan’s economy has crossed a significant milestone, with nominal GDP surpassing $400 billion, according to provisional estimates approved by the National Accounts Committee (NAC).

The committee projected GDP growth of 2.68% for the current fiscal year, bringing the economy’s size to Rs114.7 trillion (approximately $411 billion).

Market analysts describe this as a notable recovery, highlighting that nominal GDP in US dollar terms has grown at a compound annual growth rate (CAGR) of 9.3% over the past five years.

The government has set a long-term target of achieving a $1 trillion economy by FY2035, a goal that experts say will require structural reforms, political stability, and disciplined external account management.

Recent national accounts data shows the economy expanding from Rs105.1 trillion in FY24 to Rs114.7 trillion in FY25, reflecting a rise from $372 billion to $411 billion.

Despite the improvement, the FY25 growth estimate falls short of the government’s original 3.6% target. Analysts estimate full-year GDP growth to be between 2.5% and 3.0%, with agriculture expanding by 1.8%, industry by 1.0%, and services by 3.4%.

To support economic recovery, the State Bank of Pakistan (SBP) recently lowered its policy rate by 100 basis points to 11%, citing a more favorable inflation outlook.

Meanwhile, the IMF has revised its FY25 GDP growth forecast for Pakistan to 2.6%, down from a previous estimate of 3.2%.

Economic experts emphasize the need for continued reforms and strong policy measures to sustain growth and achieve long-term economic stability.