Pak Govt Set to Approve Ambitious Economic Targets for FY2025-26

As Pakistan prepares to finalize its economic roadmap for the next fiscal year, the federal government is expected to approve a set of key macroeconomic targets at the Annual Plan Coordination Committee (APCC) meeting scheduled for today.

According to official budget documents, the government has proposed a GDP growth target of 4.2% and an inflation ceiling of 7.5% for FY2025- 26, reflecting its aim to stabilize the economy while fostering sustainable development.

Focus on Investment and Savings

To support this growth trajectory, the proposed targets include:

• Investment-to-GDP Ratio: 14.7%
• Private Investment Target: 9.8%
• National Savings Target: 14.3%

These goals are designed to boost domestic production and mobilize private capital in key economic sectors.

Sector-Wise Growth Projections

Agriculture Sector

The agriculture sector is expected to play a pivotal role with an overall growth target of 4.5%. This includes:

• Major Crops: 6.7%
• Cotton: 7%
• Livestock: 4.2%
• Forestry: 3.5%
• Fisheries: 3%

Industrial Sector

The government projects 4.3% industrial growth, driven largely by the manufacturing segment:

• Large-Scale Manufacturing: 3.5%
• Small-Scale Industry: 8.9%
• Overall Manufacturing: 4.7%
• Construction Sector: 3.8%
• Electricity, Gas & Water Supply: 3.5%
• Mineral Development: 3%

Services Sector

The government forecasts a 4% expansion in the services sector, highlighting key components such as:

• Wholesale & Retail Trade: 3.9%
• Transport & Communication: 3.4%
• Hotel & Food Services: 4.1%
• Information Sector: 5%
• Finance & Insurance: 5%
• Real Estate: 4.2%
• Government Services: 3%
• Education: 4.5%
• Health & Social Services: 4%

With the proposed targets, the government is aiming to balance growth, control inflation, and stimulate private sector activity. The APCC’s final approval will mark the formal kickoff of fiscal planning for the 2025-26 year, setting the tone for Pakistan’s economic direction.