ISLAMABAD: The Annual Plan 2025-26, released on Tuesday, emphasises public investment to drive private sector-led growth, tackle structural constraints, enhance climate resilience, and improve access to health and education.
Priority sectors for resource allocation and reform include exports, agriculture, digital transformation, institutional reforms, energy and infrastructure, and industry and production, ensuring a strategic push towards economic diversification and development.
CLIMATE CHANGE: The annual plan prioritises enhancing resilience to climate shocks, including floods, droughts, and other natural disasters. Without adaptive measures, climate change could reduce GDP by 6.5 per cent to 9pc by 2050, with water shortages adding a further 4.6pc in losses. For 2025-26, an amount of Rs3,500 million has been proposed for ongoing climate projects, with Rs2,860m earmarked for afforestation. The Pakistan Meteorological Department has sought Rs748.8m to upgrade meteorological infrastructure and forecasting systems.
AGRICULTURE: The annual plan under the Uraan Pakistan framework, focuses on agricultural policy reform, adaptation of climate-smart technologies, soft credit facilities, and market deregulation. Strategic actions include digitised disease surveillance, advance agricultural research, and promotion of aquaculture. These initiatives aim to improve productivity, competitiveness, and climate resilience while ensuring equitable and sustainable food systems.
MANUFACTURING: The manufacturing and industrial sectors remain a vital pillar of the economy, and to support these sectors, the government has planned 10 projects during 2025-26 annual plan in the manufacturing sector with a budget of Rs1904.3m. Two additional initiatives to facilitate trade and one to promote the mineral sectors are allocated Rs400m and Rs718.6m, respectively.
BLUE ECONOMY: Under the annual plan, the development agenda includes port infrastructure upgrades, operationalisation of the Blue Economy Centre in Gwadar, and the expansion of the Pakistan National Shipping Corporation fleet. Targets include achieving 3.5m TEUs in a container throughput and $400 million in fisheries exports.
Published in Dawn, June 11th, 2025
