Morning News: Economy expands 3.71pc in 1QFY26 – By HMFS Research
Dec 31 2025
HMFS Research
- Pakistan’s economy grew by 3.71 per cent in the first quarter (July-September) of the current fiscal year, a sizable increase from 1.56pc recorded in the same period last year. However, the economy slowed down when compared with the 6.17pc expansion in the previous quarter (April-June), apparently due to weak consumer demand and the impact of monsoon floods weighing on overall economic activity, according to data released by the National Accounts Committee (NAC) on Tuesday. The year-on-year quarterly growth was mainly driven by a 9.38pc increase in the industrial sector, followed by 2.89pc growth in the agriculture sector and 2.35pc in the services sector. The combined performance of these three key sectors contributed significantly to the overall economic expansion during the quarter.
- Pakistan and the Asian Development Bank (ADB) on Tuesday signed two major climate resilience initiatives amounting to USD 304.5 million. These initiatives include: i) the Sindh Coastal Resilience Sector Project (SCRP) amounting to USD 180.5 million, and ii) the Punjab Climate Resilient and Low Carbon Agriculture Mechanization Project amounting to USD 124 million. Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, expressed his sincere appreciation for ADB’s role as a trusted development partner and its continued support to Pakistan in advancing climate resilience, sustainable agriculture, and inclusive growth. He highlighted that the Sindh Coastal Resilience Project will promote integrated water resources and flood risk management, restore nature-based coastal defenses, and strengthen institutional and community capacity for strategic action planning.
