General Economic Updates

• Report finds lending to private sector lowest in Pakistan
• Undocumented economy is 40pc of GDP

KARACHI: The advances to deposits ratio (ADR) further declined from 50 per cent in December 2024 to just 35pc as of June this year, while the investments to deposits ratio (IDR) surged from 90pc to 100pc during the same period, according to a report.

The Banking Publication 2025 titled “Banking Forward: Journeying Towards Future Horizons” released by PwC-A.F. Ferguson on Friday said Pakistan’s ADR remains significantly lower than Bangladesh at 87pc, India at 79pc and Sri Lanka at 59pc. In contrast, Pakistan’s IDR of 100pc is much higher than Bangladesh at 29pc, India at 33pc and Sri Lanka at 47pc.
 
Pakistan should have been in this club.

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Pakistan posted a gross domestic product (GDP) growth of 3.71% during the first quarter of FY2026, said Federal Minister for Planning, Development and Special Initiatives, AhsanIqbal.

“This is 2.15% more than the corresponding number of Q1 2024-25,” said the federal minister in a social media post.

“This defines a qualitative change in the trajectory of GDP compared to 2024-25….

More encouraging is that it is coming from Industrial growth, which in 2025-26 Q1 is 9.38%, which in Q1 of 2024-25 was 0.12%
 
ghazi52 said:
Pakistan posted a gross domestic product (GDP) growth of 3.71% during the first quarter of FY2026, said Federal Minister for Planning, Development and Special Initiatives, AhsanIqbal.

“This is 2.15% more than the corresponding number of Q1 2024-25,” said the federal minister in a social media post.

“This defines a qualitative change in the trajectory of GDP compared to 2024-25….

More encouraging is that it is coming from Industrial growth, which in 2025-26 Q1 is 9.38%, which in Q1 of 2024-25 was 0.12%
Click to expand...
They are not even making an attempt to hide their fudging of the numbers. Agricultural growth has been reported up despite well-known evidence of extensive damage due to the floods.
 
SoulSpokesman said:
@Owaiz sb

Agriculture is a small % of PAK GDP.

Regards
Click to expand...
It is a higher % of the economy than India's, but the point is not how much it contributes but rather than the government figures are showing a growth in this sector even everyone knows it has contracted.
 
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Pakistan enters 2026 with problems it is well aware of but has failed to resolve. Three alarm bells in particular are sounding off: resurgent terrorism, economic fragility, and a steady squeeze on fundamental rights.

None of these is new. What is new is the growing sense that the state is treating each as a problem to be managed, not solved, and that habit is becoming unaffordable.

Read more: https://www.dawn.com/news/1964423
 

Inflation in Pakistan clocks in at 5.6% in December 2025​

  • On a month-on-month basis, it decreased by 0.4%
BR Web Desk
January 1, 2026

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Pakistan’s headline inflation clocked in at 5.6% on a year-on-year (YoY) basis in December 2025, showed Pakistan Bureau of Statistics (PBS) data on Thursday, a reading in line with the Ministry of Finance estimate of 5.5-6.5%.

The consumer price index (CPI) was recorded at 6.1% in November 2025. The CPI stood at 4.1% in December 2024.

On a month-on-month basis, it decreased by 0.4% in December 2025, as compared to an increase of 0.4% in the previous month and an increase of 0.1% in December 2024.

This takes the 6MFY26 inflation reading at 5.15% against 7.22% in 6MFY25.

CPI inflation (Urban) increased by 5.8% on a year-on-year basis in December 2025, as compared to an increase of 6.1% in the previous month and 4.4% in December 2024.

On a month-on-month basis, it decreased by 0.4% in December 2025 as compared to an increase of 0.5% in the previous month and a decrease of 0.1% in December 2024.
 
CPI inflation (Rural) increased by 5.4% on a year-on-year basis in December 2025, as compared to an increase of 6.3% in the previous month and 3.6% in December 2024.

On a month-on-month basis, it decreased by 0.6% in December 2025, as compared to an increase of 0.2% in the previous month and an increase of 0.3% in December 2024.

In its monthly outlook released on Wednesday, the Ministry of Finance has projected that inflation readings will remain in the range of 5.5% to 6.5% in December 2025.

“Inflation is projected to remain moderate, in the range of 5.5-6.5% in December, primarily reflecting base effect,” it said.

However, the reading is lower than the expectations of several brokerage houses.

Topline Securities expected Pakistan’s CPI for December 2025 to clock in at 5.75-6.25% YoY compared to 6.15% in November 2025 and 4.07% in December 2024. “On a MoM basis, inflation for December 2025 is projected at -0.18%”.

Meanwhile, JS Global expected CPI to clock in close to 6.0% for December 2025. “For 1HFY26, average inflation is likely to clock in at ~5.2%, compared to 7.3% during the same period last year,” it said.
 
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