Pakistan set to miss growth projection for FY25

Pakistan’s gross domestic product (GDP) and per capita income increased in dollar terms at a modest pace in 2024-25, reflecting a sustained recovery in the country’s overall output compared to the previous year, the government said on Tuesday. It was announced on Tuesday that the country’s economy is expected to grow by 2.68 per cent in the current fiscal year, a revision from earlier projections of 3.6pc, suggesting that Pakistan will fall short of its GDP target. The leading global financial institutions’ estimates also show that Pakistan’s economy is expected to grow between 2.6 and 2.8pc in FY25, a slower-than-expected recovery with challenges in agriculture, industrial output, and external financing weighing on economic momentum. The lenders have already revised downward their earlier GDP projections for Pakistan.