ISLAMABAD: Pakistan posted a gross domestic product (GDP) growth of 3.04 percent in the last fiscal year (FY2025), the National Accounts Committee (NAC) said on Wednesday, revising its earlier estimate of 2.68 percent after stronger-than-expected performance in industry and services.

The updated figures, released after the committee’s 114th meeting, also showed quarter-on-quarter improvement, with growth recorded at 1.80 percent in Q1, 1.94 percent in Q2, 2.79 percent in Q3, and 5.66 percent in Q4 of FY2025.

“The committee ... approved the updated annual growth of GDP at 3.04 percent during FY2025, which was estimated at 2.68 percent during the previous meeting,” the NAC said in a statement released after the meeting. “The updated growth rates in agriculture, industry, and services are 1.51 percent, 5.26 percent, and 3.0 percent, respectively, as compared to earlier growth rates of 0.56 percent, 4.77 percent, and 2.91 percent.”

The NAC said the size of Pakistan’s economy now stands at Rs113.7 trillion ($407.2 billion), compared to Rs105.2 trillion ($371.8 billion) in the previous year.

The statement said growth in the final quarter of the last fiscal year was led by a 19.95 percent surge in industry and a 3.72 percentrise in services, with the electricity, gas, and water supply sector showing an exceptional 121.38 percent increase due to higher subsidies and base effects.

Livestock and construction also posted gains, while the textile, pharmaceutical, and transport sectors contributed positively.

The NAC said the upward revisions were mainly due to “improvements in annual benchmarks and better performance in key industries, leading to higher quarterly GDP growth rates.”

Pakistan is currently trying to recover from recent monsoon floods that inundated large parts of Punjab and Khyber Pakhtunkhwa, damaging homes, infrastructure, and farmland, with the World Bank projecting the national economy to grow by 2.6 percent in the ongoing fiscal year (FY2026), lowering its earlier estimate of 3.1 percent.

It said the country’s economic recovery would depend on an agricultural rebound and lower inflation in the coming years, with growth expected to accelerate to 3.4 percent in the next fiscal year (FY2027).