APCC Approves Key Economic Targets for Budget 2025–26; GDP Growth Set at 4.2%, Development Spending to Exceed Rs 1 Trillion

Islamabad: The Annual Plan Coordination Committee (APCC) has approved major economic targets for the federal budget 2025–26, including a projected GDP growth rate of 4.2%. The plan includes development spending of over Rs 1,000 billion, with provinces expected to contribute an additional Rs 609 billion.
Federal Minister for Planning Ahsan Iqbal chaired the high-level meeting, attended by Minister Khalid Maqbool, federal secretaries, representatives from the State Bank of Pakistan, provincial governments, and heads of key national and provincial institutions. Chief Economist Dr. Imtiaz briefed the participants on the economic roadmap, development strategy, and priority targets for the next fiscal year.
Targets set for the upcoming fiscal year include:
Agriculture sector growth: 4.5%
Livestock growth: 4.2%
Industrial sector growth: 4.3%
Construction sector growth: 3.8%
Services sector growth: 4.0%
National savings: 14.3% of GDP
Investment-to-GDP ratio: 14.7%
Current account deficit target: 0.4%
Public investment: 3.2%
Private investment: 9.8%
To fund development projects, the federal government will seek Rs 270 billion in foreign loans, while the four provinces collectively plan to borrow Rs 802 billion from foreign sources. Specific provincial allocations include:
Punjab: Rs 1,190 billion
Sindh: Rs 887 billion
Khyber Pakhtunkhwa: Rs 440 billion
Balochistan: Rs 280 billion
Ahsan Iqbal highlighted that more than half of the national budget will go toward debt servicing, which has created immense pressure on available development funds. He revealed that over 118 non-essential projects have been discontinued, emphasizing the need to prioritize national-level and water-related projects, especially in light of regional security threats like India’s posturing around the Diamer-Bhasha Dam.
Priority infrastructure projects for the next fiscal year include:
Karakoram Highway Phase-II
N-25 Karachi-Quetta-Chaman Highway
Hyderabad-Sukkur Motorway
Minister Iqbal also stressed the importance of expanding the tax net, curbing tax evasion, and launching a national-level campaign to boost revenue. He acknowledged that the development budget for FY26 will be Rs 100 billion less than the current fiscal year due to persistent economic challenges.
In closing, he urged all stakeholders to share responsibility in achieving sustainable national growth, saying:
“Tough decisions were necessary to streamline ongoing projects. We must ensure every rupee spent reflects the nation’s priorities—health, education, clean water, energy, and infrastructure.”
The meeting concluded with a commitment to foster national cohesion through the “Uraan Pakistan” program, involving workshops across all provinces to align on development goals and unity.