In a major push to steer Pakistan's economy toward recovery and growth, the National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, approved the country's economic roadmap and annual development plan for FY2025–26 on Wednesday.
According to official details, the government has set an economic growth target of 4.2% for the next fiscal year, reflecting cautious optimism amid ongoing global and domestic challenges. The inflation target has been fixed at 7.5%, suggesting a tighter grip on price stability.
The meeting saw participation from all four provincial chief ministers, the chief minister of Gilgit-Baltistan, and senior government officials—highlighting the collective approach to national development planning.
One of the standout figures in the development blueprint is the per capita income target, which has been set at PKR 560,803. Sector-wise growth targets include 4.5% for agriculture, 4.3% for industry, and 4.0% for the services sector—demonstrating a balanced approach across Pakistan’s key economic pillars.
In terms of external finances, the government is eyeing export earnings of $35 billion, with imports projected at $65 billion. Remittances, a key source of foreign exchange, are expected to touch $39 billion in FY2025–26.
The annual development plan for FY2025–26 also outlines a robust national development programme worth Rs4,083 billion. Of this, Rs1,000 billion has been earmarked for the federal development budget, while a separate Rs200 billion is allocated for federal state-owned enterprises.
In addition, Rs332 billion will be spent on infrastructure organisations like the National Highway Authority (NHA). Provincial development funds have also been allocated: Punjab leads with Rs1,188 billion, followed by Sindh at Rs887 billion, Khyber Pakhtunkhwa with Rs404 billion, and Balochistan receiving Rs280 billion.
Another Rs662 billion has been designated for 31 federal ministries and divisions. Key allocations include Rs140 billion for water projects, Rs104 billion for electricity, Rs24.71 billion for railways, and Rs11.55 billion for the Ministry of Defence. The Ministry of Planning will get Rs12.32 billion for its development schemes.
Meanwhile, the budget for the N-25 highway project in Balochistan has been slightly trimmed. Instead of the proposed Rs120 billion, the NEC approved Rs100 billion.
With these comprehensive targets and investments, the annual development plan for FY2025–26 aims to accelerate growth, control inflation, and improve infrastructure nationwide. Whether these ambitious goals will be met depends on the effective implementation and coordination between federal and provincial governments.
