The new targets come after the economy recorded 3.7% growth in the current fiscal year, as reflected in the latest economic survey. Policymakers say the focus now is on gradual stabilization alongside moderate expansion.
Trade and External Sector Targets
The government has set ambitious external sector goals for the coming year. Merchandise exports are projected at $32.9 billion, while services exports are targeted at $11.3 billion.
On the import side, goods imports are expected to reach $70 billion, while services imports are projected at $13.8 billion, highlighting the continued pressure of a trade imbalance.
Remittance inflows from overseas Pakistanis remain a key pillar of external financing, with a target of $42.4 billion for the next fiscal year.
Development Spending and Infrastructure Push
The federal government has proposed Rs1,000 billion for the Public Sector Development Programme (PSDP), focusing on infrastructure, social development, and governance reforms.
When combined with provincial and state-run development spending, the total development outlay rises to Rs3,675 billion, reflecting a broader investment push across multiple tiers of government.
Inflation Target for FY2027: Proposed at 7.5%
— Sarmaaya Financials (@sarmaayapk) June 12, 2026
The government has proposed an inflation target of 7.5% for the upcoming fiscal year, reflecting expectations of a significant slowdown in consumer price growth. Achieving this single-digit target will depend heavily on stable… pic.twitter.com/20BDZGUhcy
Key infrastructure allocations include Rs100 billion for the Karachi–Quetta Highway and Rs30 billion for the Sukkur–Hyderabad Motorway.
Major energy and water projects have also been prioritised, with Rs21 billion each allocated for Mohmand Dam and Dasu Dam, underscoring continued investment in long-term energy security and water management.
Focus on Digital, Education and Climate Initiatives
The budget sets aside Rs30 billion for digital governance and public service delivery reforms, aiming to improve efficiency through technology-driven systems.
In the education sector, Rs46 billion has been allocated for higher education, signaling continued investment in human capital development.
Environmental priorities remain part of the fiscal agenda, with a target of planting over 110 million trees and creating 23,775 green jobs under climate-related initiatives.
For renewable energy, Rs151 billion has been earmarked as public investment, reflecting Pakistan’s gradual shift toward cleaner energy sources.
Social Protection and Youth Development
Under the Prime Minister’s Youth Skill Development Programme, Rs5 billion has been allocated to train 120,000 young people, aligning with broader efforts to enhance employability in the digital economy.
The Benazir Income Support Programme (BISP) is also set for expansion, with coverage expected to reach 12 million people, reinforcing the government’s social protection network amid ongoing economic pressures.
A Budget of Balancing Priorities
The latest fiscal framework reflects a balancing act between growth ambitions, social protection, infrastructure expansion and macroeconomic stability.
While the targets signal confidence in gradual recovery, the scale of imports and fiscal commitments highlights the continuing challenges of managing external pressures and sustaining long-term economic momentum.
