Pakistan Targets 4% Economic Growth in FY27 Despite Global Uncertainties

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Pakistan is aiming to achieve an economic growth rate of 4% in the upcoming fiscal year, an improvement from the estimated 3.7% growth expected in FY26, despite challenges arising from rising global oil prices linked to tensions in the Middle East and the country’s ongoing commitments under the International Monetary Fund (IMF) programme.

According to projections highlighted by Topline Research, the anticipated expansion will be supported by stronger performance across the agriculture, industrial and services sectors. The agriculture sector is expected to play a leading role in driving growth, with output forecast to increase by 3.8% in FY27 compared to 2.9% in FY26. A significant recovery in major crops is projected, with growth rising to 3.6% from just 0.6% in the current fiscal year. Livestock production is also expected to remain stable, expanding by 3.9%.

The industrial sector is projected to grow by 4%, up from an estimated 3.5% this year. However, growth across industries is likely to vary, with large-scale manufacturing slowing to 4.5% and construction activity easing to 2.2%.

The services sector is expected to maintain steady momentum, expanding by 4.2%. Wholesale and retail trade is forecast to improve, while the information and communication sector is expected to remain among the economy’s fastest-growing areas, posting growth of 7.7% in FY27.

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