Pakistan’s federal government has set a GDP growth target of 4 percent for the upcoming fiscal year, while projecting inflation at 8.2 percent, according to official planning documents.
The annual development plan outlines economic priorities, sectoral targets, and large-scale public investment across infrastructure, energy, and social development sectors.
GDP Growth and Inflation Targets Set for Fiscal Year
The government has fixed a gross domestic product growth target of 4 percent for the next fiscal cycle.
At the same time, inflation is projected to remain at 8.2 percent, reflecting continued price stability challenges alongside economic expansion goals.
These projections form part of the broader macroeconomic framework guiding fiscal planning for the year ahead.
Sector-Wise Economic Growth Projections
According to official estimates, the agriculture sector is expected to grow by 3.8 percent during the fiscal year.
Meanwhile, the industrial sector has been assigned a higher target of 4.5 percent growth, reflecting expectations of stronger manufacturing and production activity.
Overall national investment is projected to reach 15 percent of GDP, indicating an effort to improve capital formation and economic output.
External Sector Targets and Trade Outlook
On the external front, exports are projected to reach $32.9 billion.
Services exports are expected to contribute an additional $11.3 billion to the overall trade balance.
Imports are estimated to rise to $70 billion, while remittances are projected at $42.4 billion for the upcoming fiscal year.
These figures highlight the government’s expectations for sustained external inflows alongside rising import demand.
Major Development Priorities Across Key Sectors
The development plan places strong emphasis on infrastructure, energy, water, health, and education sectors.
Significant allocations have been proposed for large-scale national projects aimed at improving long-term economic capacity.
The energy and water sectors remain central to development planning due to their critical role in economic stability.
Energy and Water Infrastructure Investments
In the power and water sector, Rs 26 billion has been allocated for the Mohmand Dam Hydropower Project.
An additional Rs 21 billion has been assigned to the Dasu Hydropower Project to support national electricity generation capacity.
The Karachi Bulk Water Supply Project has also received Rs 10 billion under the development plan.
Furthermore, Rs 151 billion has been earmarked for the energy sector under the Public Sector Development Programme.
Transport and Connectivity Projects
Major infrastructure funding includes Rs 100 billion for the N-25 Quetta highway project.
The Sukkur–Hyderabad Motorway has been allocated Rs 30 billion, while Rs 25 billion has been assigned to the ML-1 railway upgrade.
In addition, Rs 25 billion has been allocated for the Sindh Coastal Highway and Rs 21 billion for the Mehran Highway.
These investments aim to strengthen national connectivity and improve trade logistics.
Social Development and Environmental Goals
In the social sector, Rs 22 billion has been allocated for Daanish Schools to expand educational access.
The Prime Minister’s Health Program has been allocated Rs 3 billion to support healthcare services.
Environmental planning includes a target of planting 11.3 million trees during the year to support climate resilience.
Water Resources and Long-Term Capacity Expansion
The development plan also includes significant investment in water resource management.
Under the PSDP, Rs 74.92 billion has been allocated for water-related projects.
Water availability is targeted to increase from 63.5 million acre-feet to 84.2 million acre-feet.
Storage capacity is also expected to rise from 13.5 million to 23.5 million acre-feet.
These improvements aim to strengthen long-term water security and agricultural productivity.
Outlook for Fiscal Planning
Overall, the development plan reflects a combination of growth ambitions and inflation management challenges.
The government is focusing on infrastructure expansion, export growth, and improved resource management.
However, achieving these targets will depend on economic stability, investment inflows, and effective policy execution throughout the fiscal year.
