Budget 2025-26 | Govt sets 4.2% Growth Target

Amir Hamza Shaukat
Budget 2025-26 | Govt sets 4.2% Growth Target

In Budget 2025-26 the government has set Pakistan’s economic growth target at 4.2% for the upcoming fiscal year.

As a component of wider macroeconomic strategy, the inflation rate is set to be capped at 7.5%, reflecting a prudent yet hopeful stance on fiscal management in the face of both domestic and global economic pressures.

For the industrial sector, a growth rate of 4.3% is proposed. Within this, large-scale manufacturing is expected to grow by 3.5%.

In the services sector, the overall growth target has been set at 4% for FY2025-26 budget.

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In Budget 2025-26 real estate sector’s target has been set at 4.2%, while public administration is expected to grow by 3%. Education and health services are targeted to grow by 4.5% and 4%.

The upcoming federal budget reflects a cautiously optimistic strategy, with inflation projected to be contained at 7.5%.

Agriculture is set to drive growth, with a sectoral target of 4.5%. Major crops are expected to grow by 6.7%, and cotton production is targeted to rise by 7%. 

Growth in education and health services has been targeted at 4.5% and 4% respectively.