Pakistan 'sets' budget 2025-26 targets

Pakistan has set targets for the upcoming budget of 2025-26, ARY News reported on Monday, citing sources.

According to sources, Pakistan has set a Gross Domestic Product (GDP) growth target of 4.4% is being proposed for budget 2025-26.

The new budget also proposes a 4.8% growth target for the agriculture sector. A growth target of 4.8% is being considered for the industrial sector as well.

Furthermore, the sources said the services sector is expected to have a proposed growth target of 4.3%.

Sources say these proposed economic targets for the next fiscal year will first be presented in the Annual Plan Coordination Committee (APCC) meeting.

Final approval for these targets will be sought from the National Economic Council (NEC).

For the current fiscal year, the federal government has set a GDP growth target of 3.6%.

The agriculture production target for the ongoing year is set at 2%, while the industrial sector has a target of 4.4%, and the services sector 4.1%.

Earlier, the International Monetary Fund (IMF) urged Pakistan to gradually phase out federal funding for provincial development projects under the Public Sector Development Programme (PSDP).

According to sources, the IMF made this demand during virtual discussions with provincial governments, focusing on expenditure plans for the 2025-26 fiscal budget, with provinces actively participating in these sessions.

The IMF proposed that provinces eliminate their dependence on federal funds by independently raising resources, including enforcing an income tax on agricultural earnings exceeding Rs600,000 annually starting July 1, 2025, without exemptions.