BY: Mehwish Qamas Khan
ISLAMABAD: The federal and provincial governments have prepared a combined national development budget exceeding Rs4,000 billion for the upcoming fiscal year 2025-26. The Annual Planning Coordination Committee (APCC), in an extraordinary meeting chaired by Federal Minister Ahsan Iqbal today, finalized recommendations for economic targets and development allocations.
The APCC proposed a GDP growth target of 4.2%, alongside an inflation target of 7.5%. Sectoral growth projections include agriculture at 4.5%, industry at 4.3%, and services at 4.7%. The Rs4.1 trillion national outlay comprises approximately Rs1,050 billion for the federal Public Sector Development Programme (PSDP) and over Rs2,800 billion for provincial development initiatives.
Provincial Allocations
Punjab is set to receive the largest share at Rs1,192 billion, followed by Sindh at Rs887 billion. Khyber Pakhtunkhwa (KP) will get Rs440 billion, while Balochistan’s allocation stands at Rs280 billion. Representatives from all four provinces, Azad Kashmir, and Gilgit-Baltistan attended the meeting to endorse these figures.
Federal Project Priorities
Key federal allocations include Rs229 billion for the National Highway Authority, Rs35 billion for the Diamer-Bhasha Dam, and Rs42 billion for education and health sectors. Water and power projects will receive Rs259 billion, though this reflects a significant reduction compared to previous years.
The finalized national development program will now advance to the National Economic Council (NEC) for final approval. Prime Minister Shehbaz Sharif will chair the NEC meeting on June 6.
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