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ISLAMABAD: The annual plan for 2025-26 consists of a change in Pakistan’s external balance, which is expected to move to $ 2.12 billion to $ 2.12 billion in an outgoing financial year. CPI -based inflation is predicted at 7.5 % for the next financial year.
The National Economic Council (NEC) has issued an annual plan approved under the chairmanship of Prime Minister Shahbaz Sharif, and the federal budget, which outlines a widespread economic outlook. The target for GDP increase for the financial year 2025-26 has been fixed at 4.2 %, which reflects widespread reforms in the sectors.
The government is expected to help the growth of the ongoing economic stability measures and the implementation of ‘and Pakistan’, structural reforms, financial stability, a low policy rate and better investors’ confidence in a more favorable environment.
According to the National Economic Transformation Plan 2024-29, exports for the financial year 2025-26 have been targeted at $ 35.3 billion. As part of its 5ES framework, the government is following the export -led development strategy, promoting key sectors, including agriculture, IT, manufacturing, minerals, services, and blue and creative economies. However, textile products continue to dominate the country’s export portfolio.
Financial support remittances are expected to maintain their growth, which will reach $ 39.4 billion in fiscal year 2025-26. This increase is estimated to promote formal remittances, spreading European and emerging labor markets, increasing language and skill training, increasing employment abroad and increasing the share of skilled immigrants from 44 % to 50 % in collaboration with TVET institutions and universities. IT exports have also been decided to maintain two -digit growth, which reaches $ 5 billion, which supports the government’s 5ES strategy.
It is expected that the agricultural sector is expected to return to health, which will help the timely availability of key inputs, solve energy supply problems and increase production capacity.
The stability, improvement of the external sector, and the continuation of the IMF program will be important for achieving the goals of development. Additional factors include political stability, effective governance, a supportive global environment, stable commodity prices and foreign demand.
The agriculture sector has been subjected to a 4.5 % increase in fiscal year 2025-26, which is expected to increase by 6.7 % in large crops, which is refusing a contraction in the financial year 2024-25. Minor crops are likely to increase by 3.5 %, which increases favorable weather, adapting to the flexible methods of climate and increasing PSDP measures that increase production capacity. Timely delivery of standard seeds, fertilizers and mechanization is being ensured through policy interference, provincial governments are reinforcing these efforts. Livestock has been subjected to an increase of 4.2 %, while forests and fishing are likely to increase by 3.5 % and 3.0 % respectively. It is expected that these measures under the Uran Pakistan will strengthen food protection and help inflation.
The industrial sector is likely to increase 4.3 %, which includes a 3.0 % increase in mining and excavation and 4.7 % in manufacturing. Massive manufacturing (LSM) is expected to increase by 3.5 %. A lower base since fiscal year 2024-25, improvement of energy availability, low interest rate, stability in exchange rate,
And global commodity prices are expected to support easily rehabilitation. SMEs are also expected to pace with utility, construction and slaughter. Under the National Economic Transformation Plan, structural reforms and target support by the SIFC will further enhance industrial output.
The service sector is likely to increase 4.0 %. With the expected recession in agriculture and industry, especially manufacturing, wholesale and retail trade, transportation, storage and communication demand, which supports overall growth. This sector will promote its flexibility appearing during the financial year 2024-25.
It is expected that in the financial year 2024-25, it is expected to increase from 13.8 percent of GDP to 14.7 percent in fiscal year 2025-26, which is driven by economic recovery, a better business climate and political stability. Fixed investment is likely to increase from 12 % to 13 % of GDP, while national savings have been targeted 14.3 % of GDP.
The government aims to take advantage of regional cooperation, digital services and opportunities in the green economies to strengthen the external sector. Strategic priorities include increasing export competition, promoting regional integration, diversifying export markets and expanding digital trade.
