The annual economic growth target of 4.2 per cent could not be achieved during the first half of the current fiscal year, owing to lower-than-expected performance in the agriculture and industrial sectors.
The National Accounts Committee approved the economic performance figures, noting that growth remained below the target during the period under review. The first quarter growth rate was revised downward from 3.71 per cent to 3.63 per cent.
The shortfall in the first quarter was attributed to weaker performance in agriculture and industry. The agriculture sector growth declined from 2.89 per cent to 2.72 per cent, while industrial growth fell from 9.38 per cent to 8.86 per cent. However, the services sector showed slight improvement, rising from 2.35 per cent to 2.44 per cent.
In the second quarter, economic growth rose to 3.89 per cent, supported largely by improved performance in the industrial sector, which recorded growth of 7.40 per cent. The agriculture sector posted growth of 1.76 per cent, while the services sector recorded 3.69 per cent.
Officials from the Ministry of Finance and the State Bank of Pakistan (SBP) maintained that the 4.2 per cent annual growth target would be met. However, the International Monetary Fund and the World Bank cautioned that ongoing conflict in the Middle East may affect economic performance, including that of Pakistan.
