Islamabad: Pakistan's Ministry of Finance has unveiled the Economic Survey for FY26, revealing a provisional real GDP growth of 3.7%. This figure marks a 4-year high, surpassing the previous fiscal year's growth of 3.18% and exceeding the 5-, 10-, and 20-year average growth rates of 3.09%, 3.41%, and 3.44%, respectively. The country's initial target was set at 4.2%.

According to JS Global, the survey highlights the services sector as the primary driver of this growth, with provisional expansion recorded at 4.09% in FY26 compared to 3.14% in FY25. Within the services sector, Public Administration and Social Security and Information and Communication demonstrated significant progress, growing by 8.54% and 7.52%, respectively. The industrial sector also showed notable improvement with a growth of 3.51%, driven by manufacturing, construction, and mining activities. However, these gains were partially offset by a 10.63% decline in Electricity, Gas, and Water Supply.

The agriculture sector, which had recorded one of its lowest growth rates in nine years during FY25, rebounded with a growth of 2.89%. Important Crops and Cotton, which faced steep contractions in the prior year, contributed positively to the overall agricultural output. Livestock, Forestry, and Fishing sectors also provided stability with growth rates of 3.75%, 2.02%, and 1.66%, respectively.

Despite these gains, the International Monetary Fund and World Bank have projected Pakistan's GDP growth for FY26 at 3.6% and 3.0%, respectively. The Ministry of Finance maintains its GDP estimates within a range of 3.5% to 4.0% for the fiscal year.