• Pakistan's GDP grew by 2.68% for the fiscal year 2024-25, below the targeted 3.6%.
• The agriculture sector showed minimal growth of 0.56%, while the industrial sector contracted by 1.14%.
• Per capita income slightly increased to $1,824, but the economy faces significant challenges ahead.
• The government is seeking $4.9 billion in external loans to stabilize the economy.

Pakistan's economy grew by 2.68% in the fiscal year 2024-25, a missed target compared to the expected 3.6%. The economic size now stands at approximately $411 billion, with a slight rise in per capita income to $1,824. This growth reflects ongoing struggles, particularly in the agriculture and industrial sectors, according to Channel News Asia, Dawn, and India Times.

The National Accounts Committee reported that the agriculture sector's growth was a modest 0.56%, primarily due to significant drops in wheat and cotton production. Similarly, the industrial sector faced challenges, contracting by 1.14%, primarily attributed to fallbacks in large-scale manufacturing. This slowdown raises concerns about the overall economic recovery, according to Dawn and India Times.

To address these economic challenges, the Pakistani government is actively seeking $4.9 billion in external loans to support the fiscal structure for the next year. This financing plan includes short-term borrowing from various international banks, expected to stabilize the economic situation amidst mounting pressures from decreasing agricultural outputs and industrial performance. Institutions like the Asian Development Bank (ADB) are part of these financial arrangements, according to Channel News Asia and India Times.

The International Monetary Fund (IMF) has further set a target for Pakistan to increase its foreign exchange reserves by the end of June, which adds another layer of urgency to the government's economic strategies. The current reserves are approximately $14 billion, which is only sufficient for three months of imports, indicating a precarious financial situation going forward, according to Dawn and India Times.