Pakistan eyes 4% growth target for FY27 as planning body reviews PKR 1.126 trillion development budget
Officials expect current fiscal year growth to miss target at 3.7%, despite gains in manufacturing, construction and agriculture
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Pakistan likely to set 4% growth target for FY27
Pakistan is expected to set a 4% economic growth target for the next fiscal year as senior government officials prepare to review development spending plans and sectoral performance at a key policy meeting on Wednesday, according to official sources.
The Annual Plan Coordination Committee (APCC) will meet May 20, 2026, and is expected to grant preliminary approval to a federal development budget of PKR 1.126 trillion for fiscal year 2026-27, the sources said.
The committee is also expected to finalize recommendations for development allocations for various federal ministries for the upcoming fiscal year.
Federal Minister for Planning Ahsan Iqbal will chair the APCC meeting, according to the sources.
Officials said the committee will set growth targets for the agriculture, livestock, industry and services sectors for the next fiscal year. Growth targets will also be determined for the energy, mining, forestry and construction sectors.
The APCC is expected to review the performance of development projects during the current fiscal year and assess the performance of various sectors of the economy.
According to the sources, Pakistan is unlikely to achieve its current fiscal year economic growth target of 4.2%, with provisional growth estimated at 3.7%.
The agriculture sector is expected to record interim growth of 2.89% during fiscal year 2025-26, while the industrial sector is projected to grow 3.51% and the services sector 4.09%.
Large-scale manufacturing output increased 6.11% during the year, according to the estimates, while automobile production surged 61.66%.
The construction sector posted growth of 5.73%, the sources said.
Wheat production increased to 29.6 million metric tons from 28.3 million metric tons a year earlier. Rice production rose 2.8%, while sugarcane production increased 6.2%.
Cotton production, however, declined slightly to 7.052 million bales from 7.084 million bales in the previous fiscal year, according to the sources.
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