Pakistan’s economy sees 2.4% growth in Q3, central bank cuts key rate

Published 20/05/2025, 11:52
Pakistan’s economy sees 2.4% growth in Q3, central bank cuts key rate

Investing.com -- Pakistan’s economy experienced a 2.4% growth in the third quarter of the fiscal year ending in June, according to the country’s national accounts committee.

The committee, on Tuesday, also revised the growth prospects for the current fiscal year upwards.

The committee has approved a projection of 2.68% provisional growth in GDP for the fiscal year 2024/25. This projection would increase the size of Pakistan’s economy to $410.96 billion.

Earlier this month, the central bank of Pakistan reduced its key policy rate by 100 basis points, bringing it down to 11%. The bank cited an improved inflation outlook as the reason for this move. This cut resumes a series of reductions from a record high of 22% that was briefly paused in March. These cuts aim to support growth in the country’s economy.

The latest national accounts aggregates for the fiscal year 2024/25 show the size of the economy at 114.7 trillion rupees ($410.96 billion). This is an increase from the previous 105.1 trillion rupees ($371.66 billion), as stated by the committee.

In addition to these figures, the committee also approved revised GDP growth rates for the first two quarters of the fiscal year. The growth for the first quarter was revised to 1.37%, and for the second quarter, it was revised to 1.53%.

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