KARACHI: The government has set a GDP growth target of 4% for the fiscal year 2026-27, up from the estimated 3.7 percent in 2025-26.
According to the final APCC (Annual Plan Coordination Committee) document and official sources. The Planning Commission has proposed a national development budget of PKR 1.126 trillion for the Public Sector Development Program (PSDP), focusing on infrastructure, social development, and less developed regions.
The macro-economic plan sets growth targets for key sectors. Agriculture is expected to grow by 3.8 %, with important crops rising 3.8% and livestock by 2.5%.
The industrial sector aims for 4 percent growth, with manufacturing at 5.8% and construction at 2.2%. Services will continue to drive the economy with a 4.2% growth target, led by information and communication at 7.7 percent, human health at 4.3%, and public administration at 4 percent.
Infrastructure will receive the largest share of the PSDP, with PKR 729.9 billion, or 65%, of the total budget. Transport and communications will get the highest priority at 36% of infrastructure funds, followed by water resources with 12.5%, energy with 12%, and production, housing, and physical sectors at 4%.
The social sector is allocated PKR 187.2 billion, about 16.6 % of the total. Education and IEC will get 7%, the SDGs Achievement Program 6.2%, health 2.2%, and other social sectors 1.3%.
Less developed regions, including Azad Jammu and Kashmir, Gilgit-Baltistan, and newly merged districts of Khyber Pakhtunkhwa, are proposed to receive PKR 54.1 billion, or 4.8%. Science, technology, and IT sectors get 4%, governance 7.1%, and the production sector 0.8%.
For provincial development programs, the total proposed budget is PKR 3,138 billion, including local and foreign aid. Punjab is set to receive PKR 1,450 billion, Sindh PKR 816 billion, Khyber Pakhtunkhwa PKR 564 billion, and Baluchistan PKR 308 billion. The Planning Commission has asked all provinces to submit their development priorities to ensure a coordinated national development plan.
