Pakistan Revises GDP Growth Downward to 3.65% Amid Economic Slowdown

ISLAMABAD: The government has revised the gross domestic product (GDP) growth rate for the fiscal year 2026 down to 3.65%, citing a slowdown in the industrial and services sectors as the primary reason for this adjustment. This revision reflects a modest recovery in the economy, which has now reached a total GDP of $450.4 billion.

Initially projected at 3.70% in May 2026, the latest figures indicate that the economy has fallen short of its targets, which were previously set at 4%. The revised growth rates for agriculture, industry, and services stand at 3.50%, 3.34%, and 3.81%, respectively, compared to earlier estimates of 2.89%, 3.51%, and 4.09%.

This downward revision raises concerns about the economic trajectory of Pakistan, particularly as per capita income remains the lowest in the region. The sluggish growth may impact employment rates and overall consumer confidence, further complicating the government’s efforts to stimulate economic recovery.

Looking ahead, the National Accounts Committee is expected to convene again to discuss strategies for addressing these economic challenges and to set more realistic targets for the upcoming fiscal year.