On Monday, citing people familiar with the matter that Pakistan is working on new financial plans and setting key targets for its 2025-26 budget. Reliable insiders have revealed that Pakistan Starts Budget Work and plans to boost its economy by 4.4% in the upcoming 2025-26 budget. This target reflects the country’s focus on steady growth for the coming year.
Reliable insiders have revealed that Pakistan Starts Budget Work plans to boost its economy by 4.4% in the upcoming 2025-26 budget. This target reflects the country’s focus on steady growth for the coming year.
To strengthen key parts of the economy, the upcoming budget sets a goal of 4.8% growth for both farming and manufacturing industries. As a result, this shows a balanced effort to boost these important sectors. Moreover, it reflects the government’s commitment to inclusive and sustainable economic development. In the long run, these measures aim to ensure steady progress across multiple industries.
Sources have shared that the services sector is expected to grow by about 4.3% in the upcoming budget plan.
Key Phases Involved in Getting the Budget Approved
Before final approval, the key economic targets for the next fiscal year will be presented at the Annual Plan Coordination Committee meeting, sources have revealed. At the same time, this step marks an important stage in shaping the upcoming budget. Ultimately, it will help align national priorities with fiscal planning.
These targets will need to get the green light from the National Economic Council (NEC) before they can move forward.
The federal government has announced its goal to increase the country’s economic output by 3.6 percent in the current fiscal year. This target reflects their plan for steady growth and development over the coming months.
This year, the government is focusing on growing important parts of the economy. To begin with, the farming sector has set a goal to increase production by 2%, while factories and industries, in contrast, aim for a 4.4% growth. At the same time, the services sector plans to expand by 4.1%. Taken together, these targets reflect a balanced plan for economic progress. Looking ahead, officials believe this approach will support sustained development across multiple sectors.
Some time ago, the International Monetary Fund (IMF) recommended that Pakistan Starts Budget Work decrease the federal government’s financial support for development projects at the provincial level. These projects are part of the Public Sector Development Programme (PSDP).
The IMF suggested this reduction should happen gradually over time. The goal is to encourage provinces to manage their own development funding more independently. This advice reflects a push for greater fiscal responsibility within Pakistan Starts Budget Work regions.
The IMF held virtual meetings with provincial governments to discuss the spending plans for the 2025-26 budget. These discussions focused on how different regions would use the funds. Provincial leaders actively participated and shared their concerns and suggestions.
The talks aimed to ensure that the budget plans meet both federal and provincial expectations. The team designed this collaborative approach to improve financial planning for the coming year.
To boost financial independence at the provincial level, the IMF has advised reducing reliance on federal funding. One key proposal is a tax on agricultural income over Rs 600,000 per year, starting July 1, 2025. This tax would apply across the board, with no exceptions. The goal is to help provinces take greater responsibility for their own economic needs. Pakistan Starts Budget Work.
