Pakistan’s Economy Surpasses $400 Billion Mark: A Milestone Amid Challenges

In a historic achievement, Pakistan’s economy has officially crossed the $400 billion threshold for the first time, reaching approximately $411 billion in the fiscal year 2025, according to provisional estimates by the National Accounts Committee (NAC). This marks a 2.68% growth from the previous year’s $372 billion, reflecting a notable recovery despite ongoing economic pressures.

The nominal GDP growth, averaging a compound annual rate of 9.3% over the past five years, places Pakistan among the world’s top 40 largest economies. The economy expanded from Rs105.1 trillion in FY24 to Rs114.7 trillion in FY25, with sectors showing mixed performance: agriculture grew modestly by 1.18%, industry faced a slight contraction, and services demonstrated stronger recovery.

Finance Minister Muhammad Aurangzeb highlighted this milestone as a sign of steady progress, while acknowledging that achieving the government’s long-term goal of a $1 trillion economy by 2035 will require sustained reforms, political stability, and disciplined economic management. The per capita income rose to around $1,824, indicating moderate income growth amid structural challenges.

To support growth, the State Bank of Pakistan recently cut its policy rate to 11%, aiming to stimulate demand amid easing inflation. Despite falling short of the government’s original 3.6% growth target, the economy’s crossing of the $400 billion mark is seen as a psychologically significant step forward amid fiscal constraints and external debt pressures.

Economic analysts view this milestone as a foundation for future growth, emphasizing the need for continued reforms to enhance industrial output and stabilize key sectors. As Pakistan charts its economic course, this achievement signals resilience and potential for further development in the coming years.

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