4pc growth target set for FY2026–27 as macroeconomic framework sent to economic council for approval

ISLAMABAD: Having missed the growth target by half a percentage point, recording growth of 3.7pc this year, the government has set an economic growth target of 4pc and inflation at 8.2pc for the next fiscal year. The macroeconomic framework for FY2026-27 was cleared here on Monday at a meeting of the Annual Plan Coordination Committee (APCC) for formal approval by the National Economic Council (NEC) on June 3. The NEC — considered as the country’s highest national economic policy making body — is led by the prime minister and represented by all four provincial chief ministers besides as many federal ministers. The daylong APCC meeting is being presided over by Planning Minister Ahsan Iqbal and is being attended by provincial development ministers, along with senior federal and provincial bureaucrats. “For FY2026–27, Pakistan’s economy is targeted to grow by 4pc, signalling a continued growth trajectory,” the APCC working paper noted, while stating that GDP growth stood at 3.7pc in FY2025–26 against a target of 4.2pc. Growth rate for FY2024-25 had finally settled at 3.2pc. The commodity-producing sectors are targeted to expand by 3.9pc next year, driven by 3.8pc growth in agriculture and 4.5pc growth in large-scale manufacturing (LSM). Agricultural growth will be supported by a recovery in important crops (3.6pc) and cotton ginning (2.5pc), as well as robust performance in livestock (3.9pc). The industrial sector is targeted to grow by 4pc in FY2026-27 mainly due to a revival in LSM, alongside growth momentum in mining and quarrying, construction and energy (gas and water supply). The services sector is targeted to grow at 4.2pc, underpinned by stronger performance in wholesale and retail trade (4.2pc); transport, storage and communications (3.7pc); and financial services (4.5pc) as well as information and communication (7.7pc). “These targets are contingent on effective macroeconomic management and stable external conditions,” the planning commission warned as the m