The meeting of Annual Plan Coordination Committee (APCC) was held under the chairmanship of the Minister for Planning, Development and Special Initiatives/Deputy Chairman, Planning Commission on 1st June 2026. The meeting was attended by Federal Ministers, Federal Secretaries, Provincial Finance & Planning Ministers, senior officials from the provinces & special areas, and representatives from autonomous bodies, including the State Bank of Pakistan.
The Minister for Planning highlighted the challenges arising from the Middle East conflict and limited fiscal space, as well as their impact on ongoing development initiatives. He stressed the importance of enhancing federal development spending, as the federal development allocation relative to the total budget and GDP has been on a downward trajectory since 2018. He also pointed out that the gap between provincial ADPs and the federal PSDP is widening. Growing fiscal constraints restrict the Planning Commission from properly allocating funds to important mega projects related to water, connectivity, and tertiary education.
Later, the Joint Chief Economist (Economic Policy) apprised participants about the economic performance achieved during FY2025-26 and growth targets set for FY2026-27. He informed that during FY2025-26, Pakistan's economy showed resilience with a provisional GDP growth of 3.7%, supported by improvements in industry (3.5%) and services (4.1%). Inflation rose to 6.2% (Jul-Apr), while tax collections surged by 10.1%, reflecting robust fiscal management. The external sector strengthened with exports rising to $34.0 billion (July-Apr), workers' remittances at $33.9 billion, and foreign exchange reserves reaching $22.6 billion (15th May 2026).
The Joint Chief Economist also shared macroeconomic targets for FY2026-27. GDP growth is targeted at 4.0%, with sectoral growth targets of 3.8% for agriculture, 4.0% for industry, and 4.2 % for services. Inflation is targeted at 8.2%, while the plan emphasizes enhancing investment (15.0% of GDP) and national savings (14.3% of GDP) to foster economic stability.
While commenting on the growth targets set for the next fiscal year, the Economic Adviser, Finance Division appreciated the efforts of Planning Commission in formulating the Annual Plan FY2026-27 and was of the view that the proposed growth targets are cautiously optimistic and realistically achievable. The Executive Director, SBP also supported the proposed growth targets for FY2026-27 and highlighted that due to the Middle East conflict, the inflation for FY2026-27 would remain at around 8.2%. DG, Ministry of Commerce was also in agreement with the proposed targets of exports and imports in FY2026-27.
