Pakistan's FY27 plan: 4% growth, Rs144tr economy

June 10, 2026 (MLN): Pakistan has set a GDP growth target of 4% for FY2026-27, with the nominal size of the economy projected to reach Rs143.6tr, as the government proposed a National Development Outlay of Rs3.7tr for the new fiscal year, anchored by a Federal PSDP of Rs1tr and provincial ADPs of Rs2.2tr.

The targets were presented before the National Economic Council (NEC), which met today under the chairmanship of the Prime Minister, to review the Annual Plan for FY2025-26.

The meeting also considered public sector investment proposals, provincial development plans, and CDWP/ECNEC projects, according to sources close to the matter.

Key Macroeconomic Targets for FY2026-27

Sectoral growth targets for FY2026-27 have been set at 3.6% for agriculture, 4.5% for industry, and 4.2% for services, compared to outturns of 2.9%, 3.5%, and 4.1% respectively in FY2025-26.

Proposed National Development Outlay FY2026-27

Proposed Sectoral PSDP Allocation FY2026-27 (Rs bn)

Proposed Provincial ADPs FY2026-27 (Rs bn)

*Including AIP and ADP for NMDs

FY2025-26 PSDP Utilisation (as of June 9, 2026)

Federal PSDP utilisation for FY2025-26 stood at Rs590bn, or 72% of revised allocation of Rs820bn, as of June 9.

External Sector Targets FY2026-27 ($ mn)

The current account deficit is projected to widen to $3.599bn, or 0.7% of GDP, in FY2026-27 from $1.082bn in the outgoing year, reflecting higher import demand as economic activity accelerates.

FY2025-26 Economic Performance

Pakistan's economy grew 3.7% in FY2025-26, up from 3.2% in FY2024-25, with nominal GDP reaching Rs126.9tr ($452.1bn) and per capita income rising to $1,901.

Inflation averaged 6.7% for Jul-May FY2025-26. FBR tax collection grew 9.7% to Rs11,229bn in Jul-Apr, while the fiscal deficit narrowed to 1.1% of GDP. Credit to the private sector expanded 42.2% to Rs986.7bn in Jul-May.

On the external side, workers' remittances rose 8.5% to $33.9bn in Jul-Apr. Goods exports grew 17.7% to $25.8bn while the current account posted a marginal deficit of $0.2bn. SBP foreign exchange reserves stood at $17.2bn as of May 29, 2026.

CDWP/ECNEC Project Approvals (Apr 2025 – Mar 2026)

During the period, CDWP considered 709 total schemes, of which 212 were approved at CDWP level and 72 at ECNEC, with 226 schemes still under appraisal as of March 31, 2026.

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