The Annual Plan Coordination Committee (APCC) on Monday approved macroeconomic targets for the next fiscal year, proposing a GDP growth rate of 4.2 per cent for 2025–26.

According to official documents, the government has also proposed a 4.5pc growth target for the agriculture sector, 4.3pc for industrial development, and 4pc for the services sector — all marginally higher than the subdued growth recorded in the outgoing fiscal year.

The meeting, chaired by Planning Minister Ahsan Iqbal, also reviewed allocations under the Public Sector Development Programme (PSDP), with Rs50.33 billion allocated for development projects under the Cabinet Division.

Notably, Rs50 billion has been earmarked for constituency-level development schemes of Members of Parliament (MPs), despite continued criticism that such discretionary spending lacks transparency and often overlaps with provincial mandates.

Among the Cabinet Division projects are the Islamabad Technopark, National Archives infrastructure, and various power supply initiatives aimed at improving connectivity and institutional capacity.

Focus on climate change

With increasing emphasis on environmental sustainability, the APCC documents show that Rs2.78 billion has been allocated for climate change-related initiatives. Of this, Rs2.2 billion will go toward Phase-I of the Green Pakistan Programme, which includes tree plantation, forest regeneration, and climate resilience efforts.

Officials said the proposed allocations reflect the government's attempt to balance development needs with fiscal constraints and international climate commitments.

The development priorities and macroeconomic targets approved by the APCC will now be incorporated into the federal budget for 2025–26, which is expected to be unveiled in the second week of June.