Pakistan Sets Ambitious Growth Targets in Upcoming Budget 2025-26

Islamabad – The federal government of Pakistan has outlined its economic targets for the fiscal year 2025-26, aiming for a moderate but forward-looking path to recovery and growth amid challenging domestic and global financial environments.

According to official sources, the government has set the GDP growth target at 4.2%, reflecting cautious optimism. The move signals a shift toward stability, with a particular focus on enhancing agricultural productivity and industrial output. Inflation, which has remained a key concern in recent years, is expected to be controlled at 7.5%, as part of broader efforts to stabilise the economy.

Agriculture to Lead the Way

The agriculture sector is projected to be a major contributor to the national economy in the upcoming fiscal year. A growth target of 4.5% has been proposed, with major crops expected to grow by 6.7%, driven by improvements in inputs and better pricing mechanisms. Cotton output, which has seen fluctuations in recent years, is targeted to rise by 7%.

Livestock, another vital segment of rural livelihoods, is projected to expand by 4.2%, while the forestry sector is expected to grow by 3.5%. The fisheries sector is also expected to see modest growth of 3%.

Industrial and Manufacturing Sectors

The industrial sector is expected to maintain steady momentum, with a growth projection of 4.3% for 2025-26. Within this, large-scale manufacturing is targeted at 3.5% growth, whereas small-scale industries are expected to outperform with a notable 8.9% increase, indicating strong support for SMEs and localised economic activities.

The mining sector has been assigned a 3% growth target, while construction is forecasted to grow by 3.8%, potentially spurred by ongoing infrastructure and housing projects. The electricity, gas, and water supply sector is also expected to rise by 3.5%.