Pakistan GDP growth misses estimates; economy grows just 2.68% in FY25 even as country eyes $4.9 billion in external loans

Pakistan’s GDP growth has missed the government’s growth target for FY 2024-25, recording only 2.68 per cent growth against the anticipated 3.6 per cent, according to sources from Pakistan's National Accounts Committee, as reported by ARY News on Tuesday.The findings were disclosed at a National Accounts Committee session, which was presided over by the Planning Secretary of Pakistan, ARY News said according to an ANI report.The committee's assessment showed that Pakistan’s GDP amounted to $411 billion, whilst per capita income rose to$1,824. The performance across sectors showed variation, with agricultural growth at 1.8 per cent in the initial three quarters, whilst the industrial sector experienced a decline of 1.14 per cent. The services sector demonstrated significant progress, achieving 39 per cent growth from July through March.Also Read | ‘Big ban’ actions: How India is shunning Pakistan and its allies like Turkey & Azerbaijan - top 5 measuresPakistan plans to secure external commercial financing totalling $4.9 billion for the fiscal year 2025-26.The government's financing strategy includes obtaining $2.64 billion as short-term loans from commercial banks. These loans are anticipated to carry interest rates between 7-8 per cent and would come without stringent conditions or performance criteria, the report said.The financing arrangement also includes long-term borrowing of $2.27 billion from commercial banks.The country is currently engaging with four prominent international banking institutions to facilitate these financial arrangements.Pakistan aims to secure $1.1 billion from the Industrial and Commercial Bank of China (ICBC), whilst seeking $500 million each from Standard Chartered Bank and Dubai Islamic Bank. Additionally, they are pursuing a commercial guarantee for a $500 million loan from the Asian Development Bank (ADB).Also Read | IMF issues strong warning, sets 11 new conditions for Pakistan amid heightened tensions with IndiaIn a related development, the International Monetary Fund (IMF) has established a target for Pakistan to increase its foreign exchange reserves to $13.9 billion by end-June. The State Bank of Pakistan presently maintains net reserves of about $14 billion, which is sufficient to support three months of imports.