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4.2% Growth? Pakistan’s Budget 2025-26 Just Made a Bold Move – But Can It Deliver?

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On Monday, the Pakistan government announced its economic targets for the 2025–26 budget. It aims for the national economy to grow by 4.2% in the next fiscal year (Budget 2025- 26). At the same time, it plans to limit inflation to 7.5%, showing a cautious yet optimistic fiscal stance in response to global and local pressures.

To drive growth, the Pakistan government has set a 4.5% target for the agriculture sector. Cotton output should increase by 7%, while major crops are likely to rise by 6.7%.

The livestock sector is expected to grow by 4.2%, forestry by 3.5%, and fisheries by 3%. These sectors will steadily boost rural incomes and food supply.

The industrial sector aims to expand by 4.3%. Small-scale industries could grow strongly by 8.9%, and large-scale manufacturing by 3.5%.

Meanwhile, mining may grow by 3%, construction by 3.8%, and utilities like electricity, gas, and water by 3.5%.

Moreover, the services sector carries an overall growth target of 4%. Transport and communications may increase by 3.4%, and wholesale and retail trade by 3.9%.

The government also expects the information and communication sector to grow by 5%, along with financial services. Hospitality and food services may grow by 4.1%, helping boost tourism and employment.

Public administration is expected to rise by 3%, while real estate aims for 4.2% growth. Health services may grow by 4%, and education is targeted at 4.5%, reflecting a focus on human development.

In terms of investment, the government aims for a total investment-to-GDP ratio of 14.7%. Out of this, private investment accounts for 9.8%, and public investment for 3.2%. It also expects national savings to reach 14.3% of GDP, which would support internal financing needs.

Stay tuned to Brandsynario for the latest news and updates.

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