Pakistan Reaches Historic GDP Milestone, Eyes Trillion-Dollar Economy

Pakistan’s economy has achieved a landmark feat, with nominal GDP breaking through the $400 billion threshold for the first time in fiscal year 2025. The National Accounts Committee confirmed that the country’s gross domestic product reached Rs114.7 trillion, equivalent to $411 billion - a historic moment reflecting gradual economic progression.

However, the expansion narrative came with caveats. The economy expanded at a 2.68% rate, falling notably short of the government’s ambitious 3.6% growth projection. Despite this subdued performance, Topline Securities CEO Sohail Mohammed characterized the trajectory as a “notable recovery,” pointing to a robust 9.3% compound annual growth rate in nominal GDP figures over the preceding five-year period.

Sectoral Performance Reveals Divergent Trends

Economic growth proved uneven across different sectors. The agricultural segment recorded a modest 1.18% increase, while the industrial segment contracted by 1.14%, reflecting structural challenges within Pakistan’s economy. This divergent performance underscores the unbalanced nature of the current growth phase and highlights vulnerabilities in manufacturing competitiveness.

Monetary Policy Adjustments and Future Aspirations

In response to improving inflation dynamics, the State Bank of Pakistan reduced its policy rate to 11%, signaling confidence in price stability prospects. This monetary easing aims to stimulate investment and consumption as economic conditions gradually normalize.

Looking ahead, Pakistan has established an ambitious target: achieving a $1 trillion GDP milestone by fiscal year 2035. This objective hinges on sustained structural reforms, macroeconomic stability, and enhanced investor confidence in the coming years.