KARACHI: Pakistan’s economy grew 2.4 percent in the third quarter of the fiscal year that ends in June, the national accounts committee said on Tuesday, while revising up growth prospects for the current fiscal year.
In a statement the committee approved a projection of 2.68 percent provisional growth in GDP during FY 2024/25, taking the size of Pakistan’s economy to $410.96 billion.
This month Pakistan’s central bank cut its key policy rate by 100 basis points to 11 percent, citing an improved inflation outlook and resuming a series of cuts from a record high of 22 percent, following a brief pause in March, to support growth.
The latest national accounts aggregates for fiscal 2024/25 showed the size of the economy at 114.7 trillion rupees ($410.96 billion) up from 105.1 trillion rupees ($ 371.66 billion), the committee said.
Growth in the agriculture sector was 1.18 percent in Q3, despite a decline in important crops, while industry contracted 1.14 percent, hit by negative growth in mining and quarrying and large-scale manufacturing.
The committee also approved Pakistan’s revised GDP growth at 1.37 percent in the first quarter and 1.53 percent in the second.
Pakistan’s manufacturing sector growth slowed to a seven-month low in April, with the HBL Pakistan Manufacturing Purchasing Managers’ Index (PMI) easing to 51.9 from 52.7 in March, weighed by concerns over global trade.

ISLAMABAD: The governor of the Pakistani central bank said on Tuesday Islamic banking assets had for the first time reached Rs11.5 trillion ($40.7 billion) by the end of March this year, as the country actively moves toward implementing a fully Shariah-compliant financial system.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk Islamic bonds to replace interest-based treasury bills and investment bonds.

“For the first time in the history of Islamic finance in Pakistan, by the end of March 2025, Islamic banking assets have reached Rs. 11.5 trillion, that’s 21.1 percent of the total banking sector assets,” central bank governor Jameel Ahmad said at a ceremony in Karachi. 

“While there’s still a long way to go, this share is gradually increasing.”

On deposits, Islamic banks currently hold Rs. 8.4 trillion, about 25.4 percent of the total deposits in the banking industry. 

“That means nearly one-fourth of all bank deposits are now mobilized under Islamic principles. So, the share of Islamic banking is steadily rising, and the number of Islamic banking branches has surpassed 8,000,” Ahmad added. “As a result of these achievements, we can see that access to Islamic banking services has significantly improved.”

He said to support the transformation of Islamic banking, the government of Pakistan had formed a steering committee in 2022 and launched a strategic five-year plan known as SBP Vision 2028.

Ahmad said the non-issuance of sukuk Islamic bonds was a “big hurdle” hindering the promotion of Islamic banking. He called on the banking industry, regulators and the government to play their “required role” to address underlying issues and issue more sukuk bonds and offer investors Shariah-compliant products.

“This would increase the share of Islamic banking investments in the overall industry. We all should play our respective role in this respect,” the governor added.