Services sector records the fastest growth among major sectors, contributing 2.39 percentage points to Pakistan’s 3.7% GDP growth.
ISLAMABAD: Pakistan’s services sector further strengthened its position as the country’s largest economic sector during FY2025-26, increasing its share in Gross Domestic Product (GDP) to 58.42%, according to the Pakistan Economic Survey 2025-26.
The latest survey showed that the services sector remained the biggest contributor to national output while also recording the highest growth among the three major sectors of the economy, underlining its growing importance in driving Pakistan’s economic expansion.
Services sector records strongest growth
According to the survey, the services sector grew by 4.09% in FY2025-26, compared with 3.14% in FY2024-25 and 2.25% in FY2023-24.
Its contribution to overall GDP growth rose significantly to 2.39 percentage points, up from 1.83 percentage points in the previous fiscal year and 1.31 percentage points in FY2023-24.
The sector’s share in GDP also increased from 58.21% in FY2024-25 to 58.42% in FY2025-26, reinforcing its role as the primary engine of Pakistan’s economic growth.
Agriculture grows despite a marginal decline in GDP share
The agriculture sector accounted for 23.44% of GDP during FY2025-26, slightly lower than 23.62% recorded in the preceding fiscal year.
Despite the marginal decline in its share of the economy, agriculture posted stronger growth of 2.89%, compared with 1.53% in FY2024-25.
Its contribution to overall GDP growth also improved to 0.68 percentage points, up from 0.36 percentage points a year earlier, reflecting improved performance across the sector.
Industrial sector maintains stable contribution
The industrial sector’s share in GDP remained broadly unchanged at 18.14% in FY2025-26, compared with 18.17% in FY2024-25.
However, industrial growth moderated to 3.51% during the fiscal year, following a robust 5.56% expansion in the previous year.
As a result, the sector’s contribution to GDP growth eased to 0.64 percentage points, compared with 1.01 percentage points in FY2024-25.
Commodity-producing sectors contribute over 41% of GDP
The combined commodity-producing sectors, comprising agriculture and industry, accounted for 41.58% of Pakistan’s GDP in FY2025-26, marginally lower than 41.79% in the previous fiscal year.
Together, these sectors recorded 3.16% growth and contributed 1.31 percentage points to the country’s overall economic expansion during the year.
Economy grows 3.7% in FY2025-26
The Pakistan Economic Survey 2025-26 reported that the national economy expanded by 3.70% during FY2025-26, compared with 3.18% growth in FY2024-25 and 2.62% in FY2023-24.
The latest figures underscore the increasing importance of the services sector in supporting Pakistan’s economic activity. With stronger growth than agriculture and industry, the sector remained the largest contributor to GDP growth and continued to drive the country’s economic recovery during the fiscal year.