Budget 2025–26: GDP growth target set at 4.2%

Federal government has set GDP growth target at 4.2 per cent in the budget 2025-26, ARY News reported on Tuesday, citing budget document.

The budget 2025-26 will be presented today in the National Assembly by Finance Minister, Muhammad Aurangzeb.

According to details, the current account deficit for the next fiscal year is projected at 2.1 billion dollars, which equals -0.5% of GDP.

The revised National Development Plan allocates over Rs4,223 billion for various development initiatives across the country.

Of this amount, Rs2,869 billion is earmarked for the PSDP, while federal ministries and divisions will receive over Rs682 billion for their respective development projects.

The National Highway Authority is expected to receive Rs 226.98 billion. The Power Division will be allocated Rs90.22 billion under the Public Sector Development Programme (PSDP), and the Water Resources Division will receive Rs133.42 billion, the budget document available with ARY News read.

A total of Rs 253.23 billion is proposed for special areas and provincial development-related expenditures, with over Rs 105.78 billion directed towards projects of provincial nature.

The merged districts will receive an allocation exceeding Rs 65.44 billion, while Rs 82 billion is set aside for Azad Jammu & Kashmir and Gilgit-Baltistan.

Federal education and professional training programs are to be allocated over Rs 18.58 billion, while the Defence Division will receive Rs 11.55 billion. The Higher Education Commission (HEC) is expected to be allocated Rs 39.48 billion.