In a crucial move to set Pakistan’s economic direction for the next fiscal year, the National Economic Council (NEC) — chaired by Prime Minister Shehbaz Sharif — has officially approved the economic and development targets for 2024–25. This decision is expected to shape national priorities, define budget allocations, and guide public and private sector initiatives as Pakistan attempts to stabilize and revitalize its economy amid persistent challenges.
The NEC meeting, attended by key federal ministers and representatives from the provinces, also saw the formal unveiling of a new five-year economic plan for 2025–2029, which is aimed at long-term growth, investment inflow, and poverty alleviation.
Key Economic Targets for FY 2024–25
The NEC has set a GDP growth target of 3.6% for the upcoming fiscal year. This target reflects moderate optimism, given Pakistan’s past performance and the structural issues it continues to face, including inflationary pressures, external debt, and a constrained fiscal space. However, the government hopes that a mix of domestic policy reforms and foreign investment will create the conditions for gradual growth recovery.
The sectoral growth targets for 2024–25 are as follows:
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Agriculture: 2%
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Industry: 4.4%
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Services: 4.1%
These targets indicate a focus on industrial revitalization and strengthening the services sector, while acknowledging the continuing challenges in agriculture, including water scarcity, outdated farming techniques, and climate-related threats.
External Sector Outlook
The government is aiming for exports of $40.5 billion during FY 2024–25, up from previous years. This target hinges heavily on global demand, currency stability, and improved trade facilitation. Imports are projected at $68.1 billion, reflecting continued reliance on foreign goods, though the government intends to encourage import substitution in some areas.
Remittances from overseas Pakistanis — a vital source of foreign exchange — are projected to reach $30.2 billion. This is a critical component of the country’s external account and remains a key source of support for the balance of payments.
The current account deficit is targeted at 3.7% of GDP, suggesting a cautious approach amid an ongoing IMF program and international scrutiny of Pakistan’s fiscal management.
Development Budget and Public Investment
In line with these targets, the NEC has approved a Rs 1,500 billion Public Sector Development Programme (PSDP) for the upcoming fiscal year. Out of this, Rs 1,400 billion will go toward federal development projects, while Rs 100 billion is allocated for Public-Private Partnership (PPP) initiatives — indicating a strategic move to leverage private capital for public infrastructure.
This investment is aimed at bolstering infrastructure, energy projects, transport, water management, and technology development. The inclusion of PPPs is also seen as a way to reduce the burden on the federal budget while encouraging innovation and efficiency in project delivery.
A New Five-Year Economic Plan (2025–2029)
In addition to short-term fiscal targets, Prime Minister Shehbaz Sharif also introduced a comprehensive five-year economic transformation plan. This strategic framework is aimed at steering Pakistan toward sustainable and inclusive growth, with the following key goals:
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Achieving 6% GDP growth by FY 2029
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Averaging 5.1% annual growth over five years
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Increasing per capita income significantly
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Reducing poverty and unemployment through targeted interventions
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Attracting $29 billion in foreign investment over the period
According to officials, the investment plan involves major inflows from Gulf countries. The breakdown includes $10 billion from the UAE, $10 billion from Kuwait, $5 billion from Saudi Arabia, $2 billion from Qatar, and $2 billion from Azerbaijan. These investments are expected to span across sectors such as energy, infrastructure, mining, and agriculture.
Challenges Ahead
While the targets and investment plans are ambitious and well-structured, the road ahead is not without hurdles. Persistent inflation, weak revenue generation, political instability, and a heavy debt burden continue to weigh on the economy. Moreover, external factors like global oil prices, interest rate fluctuations, and geopolitical tensions could significantly influence Pakistan’s economic performance.
Additionally, the effectiveness of implementation will be critical. Pakistan has historically struggled with policy continuity, bureaucratic red tape, and weak project execution — all of which could jeopardize the success of these plans if not addressed through reforms and accountability.
Conclusion
The NEC’s approval of the FY 2024–25 targets and the five-year economic roadmap marks an important step in Pakistan’s economic journey. While the goals are ambitious, they reflect a shift toward planning-driven governance and strategic investment. For meaningful progress, however, the government will need to ensure that policies are not only announced but also effectively implemented, monitored, and adapted as needed. Only then can these targets translate into tangible benefits for the people of Pakistan.
Reference: قومی اقتصادی کونسل نے نئے مالی سال کے اہداف کی منظوری دیدی