ISLAMABAD - The federal government is likely to propose the gross domestic product (GDP) growth target of 4.4 percent for the upcoming fiscal year 2025-26, it was learnt reliably here. To review the provisional gross domestic product (GDP) targets for FY2024-25, meeting of National Accounts Committee has been convened for May 20, while meeting of Annual Plan Coordination Committee has been convened on May 26 to review/finalise Annual Plan/PSDP for the ongoing and upcoming fiscal years, official source told The Nation.
The source said that meeting of the Annual Plan Coordination Committee (APCC), which was earlier proposed for May 23, has now been convened on May 26. The APCC will review the ongoing fiscal year 2024-25 and proposed Annual Plan/PSDP for 2025-26. APCC is a consultative body which gives recommendations on macroeconomic and development framework to National Economic Council. Minister for Planning, Development and Special Initiative Ahsan Iqbal, who is also Deputy Chairman Planning Commission, will preside over the meeting of the Annual Plan Coordination Committee (APCC). Three provinces including Punjab, Khyber Pakhtunkhwa, Balochistan, and special areas like Azad Kashmir and Gilgit-Baltistan have nominated the names of their planning/finance ministers for attending the APCC meeting, the source said. However, Sindh is the only province where Chief Minister Murad Ali Shah along with finance and planning minister have been nominated to attend the meeting, the source added.
The meeting will review the development portfolio for the ongoing fiscal year 2024-25 and will approve the overall indicative development budget for Federal Public Sector Development Program (PSDP), provincial Annual Development Plan (ADP) and annual plan for the upcoming FY2025-26. The Ministry of Planning has sought Indicative Budget Ceiling (IBC) of approximately Rs2.9 trillion for the Public Sector Development Programme for the upcoming fiscal year 2025-26 (PSDP). However, Federal Minister for Planning Ahsan Iqbal last week told the media that an IBC of Rs 921 billion has been provided by the Finance Division.
According to source, the government is likely to propose GDP growth target of 4.4 percent for the upcoming fiscal year, which is higher from 3.6 growth target set by the government for the ongoing fiscal year 2024-25. According to the proposed Annual Plan, agriculture is expected to grow at 4.8% in 2025-26. Similarly, it said that industrial sector is expected to recover and is likely to recommend growth target of 4.8% during the upcoming FY 2025-26. The growth for services sector is likely to be recommended at 4.3%.
Notably, for the ongoing fiscal year, the federal government had set the GDP growth target of 3.6 percent. Prior the APCC meeting, the source said that the National Accounts Committee meeting has been convened on May 20, to discuss the provisional estimates of the GDP and Gross Fixed Capital Formation (GFCF) for the FY2024-25. The meeting of NAC, to be presided over by Secretary Ministry of Planning, Development and Special Initiatives, will be attended by the representatives of Finance Division, Planning Division, Ministry of Industries, Ministry of National Food Security, State Bank of Pakistan and Pakistan Bureau of Statistics. The meeting will review the provisional growth targets for agricultural, industrial and service sectors during the ongoing fiscal year 2024-25.
The final decision on the NAC and APCC recommendations will be made by the National Economic Council (NEC). The source said that meeting of the National Economic Council is likely to be held during the last week of May, to review ongoing and future investments and set targets for the upcoming fiscal year 2025-2026. The NEC, to be chaired by the Prime Minister, will review the national investment plan for 2024-25, and will finalize national investment plan for 2025-26, the provisional GDP growth figures for the outgoing fiscal year FY 2024-25 and finalize the figures for the previous fiscal year (FY23-24). The NEC will also review the performance reports of the Executive Committee of the National Economic Council (Ecnec) and the Central Development Working Party (CDWP) for the ongoing fiscal year 2024-25.