Introduction
On June 4, 2025, the National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, approved the Annual Development Plan for FY2025–26. A substantial allocation of Rs. 4,224 billion was approved to drive national development. This includes Rs. 1,000 billion earmarked for federal-level projects and Rs. 2,869 billion for provincial schemes. The NEC also reviewed revised economic indicators for FY2024–25 and endorsed the macroeconomic framework and targets for the upcoming fiscal year, reflecting a coordinated, whole-of-government approach to economic transformation.[1]
Pakistan’s Annual Plan 2025–26 reflects a bold but pragmatic shift toward stabilisation, investment-led growth, and human-centred development under the government’s URAAN Pakistan framework. Despite global economic headwinds, the national economy has demonstrated resilience, recording a 2.7% GDP growth in FY2025 with inflation drastically reduced from 27% in April 2024 to 0.3% in April 2025. The plan outlines a 4.2% GDP growth target for FY2026, driven by structural reforms, investment in strategic sectors, and a reorientation of public spending to foster equity and sustainability.[2]
