Karachi: Pakistan's economy demonstrated significant momentum in December 2025, with high-frequency indicators pointing to strong performances across several key sectors, including autos, cement, urea, and power generation.

According to JS Global, cement dispatches remained healthy at 4.3 million tons, driven by ongoing infrastructure development and private sector construction activities. Urea offtake reached a historic monthly high of 1.4 million tons, a 37% increase year-on-year, attributed to improved farm economics. The auto sector also saw robust activity, with passenger car and motorcycle sales rising 35% year-on-year to 13,300 units and 158,200 units, respectively, aided by new model launches and improved supply chains. Power generation increased by 8.8% year-on-year to 8,487 gigawatt-hours, reflecting higher industrial and commercial demand.

On the macroeconomic front, economic activity showed resilience, supported by strong remittance inflows of $3.6 billion, a 17% year-on-year increase, and large-scale manufacturing growth of 10% year-on-year. Easing inflationary pressures and improved monetary conditions led to a decline in the six-month Treasury bill yield to 10.41%, a 13% year-on-year decrease, indicating a softer interest rate environment. However, external pressures reemerged as the current account posted a deficit of $244 million, driven by imports substantially outpacing exports.