Pakistan Budget 2025–2026 Targets 4.2% Economic Growth

According to sources on Monday 2nd of June 2025, the Pakistani government has established economic goals for the next budget, which is scheduled for “2025–2026”. According to specifics, Pakistan’s government has set a (4.2%) economic growth goal for the next fiscal year. The planned (7.5%) inflation rate cap, which is part of larger macroeconomic planning, suggests a watchful but hopeful approach to fiscal management in the face of both domestic and international economic difficulties.

Agriculture Play Important Role

They added that the agricultural sector, which has a (4.5%) development target in the budget for “2025–2026”, is projected to be a major driver of growth.

Also Read: Eid-ul-Adha Holidays And Safety Protocols Announced Nationwide

While Cotton production is expected to increase by (7%) in this sector, while main crops are expected to grow by (6.7%).

Even though the fisheries industry is projected to increase by (3%) in budget “2025–2026”, the livestock and forestry sectors have been given growth targets of (4.2% and 3.5%), respectively.

Industrial Sector

A (4.3%) growth rate for the industrial sector is planned. Within this, it is expected that small-scale industries would experience a notable expansion of (8.9%), while large-scale manufacturing will grow by (3.5%).

In the budget for “2025–2026”, the mining industry is expected to expand by (3%), the building industry by (3.8%), and the power, gas, and water supply industry by (3.5%).

The overall growth goal for the services sector has been set at (4%) for the budget for Fiscal Year “2025–2026”. While transportation and communications will likely expand by (3.4%), wholesale and retail commerce is anticipated to grow by (3.9%).

Information and communication is expected to grow by (5%), financial services by (5%), and accommodation and culinary services by (4.1%). Public administration will probably go up by (3%), while the real estate sector has set a target of (4.2%).

Health Sector

The budget for “2025–2026” aims to increase health and education services by (4%) and (4.5%), respectively. Regarding investments, a total investment-to-GDP ratio of (14.7%) has been suggested, of which (3.2%) is from state investment and (9.8%) is from private investment. It is estimated that national savings will account for (14.3%) of GDP.