Government projects $3.8 billion current account surplus, stronger exports, higher remittances and increased investment in FY27
ISLAMABAD: The federal government has unveiled the Annual Plan under Budget 2026-27, setting a 4 percent GDP growth target and announcing a national development outlay of Rs3.675 trillion for the upcoming fiscal year.
The plan outlines the government’s strategy to accelerate economic activity through higher investment, increased exports, stronger remittance inflows and major infrastructure development projects.
Under Budget 2026-27, the agriculture sector is expected to grow by 3.6 percent, supported by initiatives under the URAAN Pakistan programme, improved availability of agricultural inputs and continued adaptation to climate-related challenges.
The government believes these measures will help strengthen agricultural productivity and support rural incomes.
The industrial sector is projected to expand by 4.5 percent, driven by improved performance in large-scale manufacturing, mining and quarrying, as well as sustained momentum in the construction industry. Meanwhile, the services sector is forecast to grow by 4.2 percent on the back of increased economic activity across key productive sectors.
The government has set a target of raising total investment to 15 percent of GDP, while national savings are expected to reach 14.3 percent of GDP.
Officials expect fiscal discipline, lower borrowing costs and structural reforms to create a more favourable environment for business and investment.
On the external front, Budget 2026-27 projects a current account surplus of $3.8 billion, equivalent to 0.7 percent of GDP. Goods exports are targeted at $32.9 billion, while services exports are expected to reach $11.3 billion.
Goods imports are estimated at $70 billion and services imports at $13.8 billion. Workers’ remittances are projected to rise to $42.4 billion during FY27.
The Rs3.675 trillion development programme consists of a Rs1 trillion Federal Public Sector Development Programme (PSDP), Rs2.224 trillion in provincial Annual Development Programmes and Rs451 billion in investments by State-Owned Enterprises.
Among the provinces, Sindh has proposed the largest development allocation of Rs770 billion, followed by Punjab with Rs749 billion, Khyber Pakhtunkhwa with Rs455 billion and Balochistan with Rs250 billion.
A major portion of federal spending under Budget 2026-27 has been earmarked for infrastructure and connectivity projects.
Allocations include Rs100 billion for the N-25 Quetta-Karachi Highway, Rs30 billion for the Sukkur-Hyderabad Motorway (M-6) and Rs25 billion for the upgradation of Pakistan Railways Main Line-1 (ML-1).
The government has also allocated Rs26 billion for the Mohmand Dam Hydropower Project, Rs21 billion for the Dasu Hydropower Project and Rs14 billion for the Diamer-Bhasha Dam Project.
In the social sector, Rs22 billion has been allocated for Daanish Schools, Rs18 billion for the Prime Minister’s Youth Programme and Rs11 billion for the development of IT Parks in Islamabad and Karachi.
Additionally, Rs17 billion has been earmarked for the Integrated Flood Resilience and Adaptation Project in Balochistan, while Rs10 billion has been allocated for the Greater Karachi Bulk Water Supply Scheme (K-IV).
As part of its digital economy strategy under Budget 2026-27, the government has also set an ambitious IT and telecommunications export target of $7.3 billion, aiming to boost technology-driven growth and increase Pakistan’s export earnings.
