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Business Recorder
5 hours ago
- Business
- Business Recorder
‘Monthly Development Plan' unveiled: Pakistan upbeat about 4.2pc growth
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal reaffirmed confidence in achieving a 4.2 percent GDP growth rate in fiscal year 2025-26, projecting a climb to six percent by the fiscal year 2028-29 of the current five-year plan. Speaking to the media at the launch of the Monthly Development Plan on Thursday, he said the government had achieved a significant milestone by preparing a Rs4 trillion national development outlay for the fiscal year 2025–26, in just the second year of its five-year term, a target originally scheduled for 2028–29. According to documents shared by the Planning Ministry, the minister said that the government projected GDP growth targets 4.2 percent for fiscal year 2025-26, 5.1 percent for 2026-27, 5.7 percent for 2027-28 and 6 percent for fiscal year 2028-29. Budget FY26: APCC proposes historic Rs4.083trn outlay The agriculture sector growth targets have been projected 4.5 percent for fiscal year 2025-26, 4.4 percent for 2026-27, 4.6 percent for 2027-28 and 5.1 percent for fiscal year 2028-29. The minister said that the ministry has proposed Rs17.083 trillion National Development Outlay for next five years. He said that a total of 1.1 trillion for fiscal year 2024-25, Rs1.28 billion for 2025-26, Rs1.41 trillion for 2026-27, Rs1.53 trillion for 2027-28 and Rs1.7 trillion for fiscal year 2028-29. About the Industry, the ministry gave projection of growth targets, 4.3 percent for fiscal year 2025-26, 6.2 percent for 2026-27, 6.8 percent for 2027-28 and 6.9 percent for fiscal year 2028-29. About the services sector, the ministry projected four percent growth target for fiscal year 2025-26, five percent for 2026-27, 5.7 percent for 2027-28 and 6.2 percent for fiscal year 2028-29. About the total investment percent of GDP, according to documents, 13.8 percent target has been set for financial year 2025, 14.7 percent for 2026, 15.6 percent for financial year 2027, 16.4 percent for 2028 and 17 percent for fiscal year 2029. About the public sector, 2.9 percent target of total investment of GDP for fiscal year 2025, 3.2 percent for 2026, 3.5 percent for 2027, 3.5 percent for 2028 and 3.7 percent for fiscal year 2029. About the private sector investment, the Ministry proposed 9.1 percent target for fiscal year 2025, 9.8 percent for 2026, 10.4 percent for 2027, 11.1 percent for 2028 and 11.6 percent for fiscal year 2029. About the National Saving percentage of GDP, 14.1 percent investment target of GDP for fiscal year 2025, 14.3 percent for 2026, 15.1 percent for 2027, 15.6 percent for 2028, and 15.8 percent for fiscal year 2029. According to documents, the export would be increased $ 63 billion in five years, inflation would be reduced 6.2 percent and foreign direct investment would be increased 30 percent. The unemployment rate would be reduced to underfive percent and industrial production would be increased 40 percent. The planning minister said, 'We have a broader vision of transforming Pakistan into a $1 trillion economy by 2035. If we can reach $600 billion by 2029, adding another $400 billion over the next five to seven years is certainly within reach'. He said that outlining strategic priorities for the coming year, the government's focus would be on 'governance, innovation, and reform' to maintain growth momentum. He said that in a major positive development, the minister highlighted that headline inflation had dropped to 3.5 percent in May 2025, down sharply from 11.8 percent a year earlier. 'Only a few countries in the world have managed to bring double-digit inflation down so drastically in such a short time,' he noted. He said that foreign remittances had also seen a considerable jump, with inflows increasing by $10 billion over the past three years. He said that our remittances have grown from $27 billion to $37 billion, crediting the Pakistani diaspora for their resilience and patriotism. Sharing recent financial successes, the minister said Pakistan had posted a $1.9 billion current account surplus between July and April — a sharp reversal from a $1.3 billion deficit during the same period last year. He also revealed that improved project evaluation by the Planning Commission had saved the national treasury Rs5.4 billion last month. 'Better scrutiny and smarter planning make a big difference,' he said. Turning to national security, the minister mentioned a high-level, single-agenda meeting chaired by Prime Minister Shehbaz Sharif and attended by key national leadership, including representatives from Azad Jammu and Kashmir and Gilgit-Baltistan. 'The agenda was clear, crafting a unified national strategy to counter Indian aggression and provocations,' he said, warning India against weaponising water resources, which he described as a violation of international agreements. 'Pakistan's water rights are not a favour from India, they are protected by international treaties,' he asserted. Ahsan Iqbal said that just as Pakistan's armed forces had shattered India's arrogance on the battlefield, the country would counter India's economic and political hostility with unity, resilience, and adherence to international law. Copyright Business Recorder, 2025
Business Recorder
7 hours ago
- Business
- Business Recorder
‘Monthly Development Plan' unveiled: Govt upbeat about 4.2pc growth
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal reaffirmed confidence in achieving a 4.2 percent GDP growth rate in fiscal year 2025-26, projecting a climb to six percent by the fiscal year 2028-29 of the current five-year plan. Speaking to the media at the launch of the Monthly Development Plan on Thursday, he said the government had achieved a significant milestone by preparing a Rs4 trillion national development outlay for the fiscal year 2025–26, in just the second year of its five-year term, a target originally scheduled for 2028–29. According to documents shared by the Planning Ministry, the minister said that the government projected GDP growth targets 4.2 percent for fiscal year 2025-26, 5.1 percent for 2026-27, 5.7 percent for 2027-28 and 6 percent for fiscal year 2028-29. Budget FY26: APCC proposes historic Rs4.083trn outlay The agriculture sector growth targets have been projected 4.5 percent for fiscal year 2025-26, 4.4 percent for 2026-27, 4.6 percent for 2027-28 and 5.1 percent for fiscal year 2028-29. The minister said that the ministry has proposed Rs17.083 trillion National Development Outlay for next five years. He said that a total of 1.1 trillion for fiscal year 2024-25, Rs1.28 billion for 2025-26, Rs1.41 trillion for 2026-27, Rs1.53 trillion for 2027-28 and Rs1.7 trillion for fiscal year 2028-29. About the Industry, the ministry gave projection of growth targets, 4.3 percent for fiscal year 2025-26, 6.2 percent for 2026-27, 6.8 percent for 2027-28 and 6.9 percent for fiscal year 2028-29. About the services sector, the ministry projected four percent growth target for fiscal year 2025-26, five percent for 2026-27, 5.7 percent for 2027-28 and 6.2 percent for fiscal year 2028-29. About the total investment percent of GDP, according to documents, 13.8 percent target has been set for financial year 2025, 14.7 percent for 2026, 15.6 percent for financial year 2027, 16.4 percent for 2028 and 17 percent for fiscal year 2029. About the public sector, 2.9 percent target of total investment of GDP for fiscal year 2025, 3.2 percent for 2026, 3.5 percent for 2027, 3.5 percent for 2028 and 3.7 percent for fiscal year 2029. About the private sector investment, the Ministry proposed 9.1 percent target for fiscal year 2025, 9.8 percent for 2026, 10.4 percent for 2027, 11.1 percent for 2028 and 11.6 percent for fiscal year 2029. About the National Saving percentage of GDP, 14.1 percent investment target of GDP for fiscal year 2025, 14.3 percent for 2026, 15.1 percent for 2027, 15.6 percent for 2028, and 15.8 percent for fiscal year 2029. According to documents, the export would be increased $ 63 billion in five years, inflation would be reduced 6.2 percent and foreign direct investment would be increased 30 percent. The unemployment rate would be reduced to underfive percent and industrial production would be increased 40 percent. The planning minister said, 'We have a broader vision of transforming Pakistan into a $1 trillion economy by 2035. If we can reach $600 billion by 2029, adding another $400 billion over the next five to seven years is certainly within reach'. He said that outlining strategic priorities for the coming year, the government's focus would be on 'governance, innovation, and reform' to maintain growth momentum. He said that in a major positive development, the minister highlighted that headline inflation had dropped to 3.5 percent in May 2025, down sharply from 11.8 percent a year earlier. 'Only a few countries in the world have managed to bring double-digit inflation down so drastically in such a short time,' he noted. He said that foreign remittances had also seen a considerable jump, with inflows increasing by $10 billion over the past three years. He said that our remittances have grown from $27 billion to $37 billion, crediting the Pakistani diaspora for their resilience and patriotism. Sharing recent financial successes, the minister said Pakistan had posted a $1.9 billion current account surplus between July and April — a sharp reversal from a $1.3 billion deficit during the same period last year. He also revealed that improved project evaluation by the Planning Commission had saved the national treasury Rs5.4 billion last month. 'Better scrutiny and smarter planning make a big difference,' he said. Turning to national security, the minister mentioned a high-level, single-agenda meeting chaired by Prime Minister Shehbaz Sharif and attended by key national leadership, including representatives from Azad Jammu and Kashmir and Gilgit-Baltistan. 'The agenda was clear, crafting a unified national strategy to counter Indian aggression and provocations,' he said, warning India against weaponising water resources, which he described as a violation of international agreements. 'Pakistan's water rights are not a favour from India, they are protected by international treaties,' he asserted. Ahsan Iqbal said that just as Pakistan's armed forces had shattered India's arrogance on the battlefield, the country would counter India's economic and political hostility with unity, resilience, and adherence to international law. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Advisor highlights agri output decline
PESHAWAR: Advisor to the Chief Minister of Khyber Pakhtunkhwa on Finance and Inter-Provincial Coordination, Muzzammil Aslam stated that according to the federal government, there has been a 15% decline in the production of major crops, which includes a 30% decline in cotton production alone. As a result, an additional five billion dollars will need to be spent on cotton imports. Similarly, due to the drop in wheat production, 3 billion dollars will be spent on wheat imports. Overall, the decrease in agricultural output will force Pakistan to import goods worth $10 billion, representing a loss of Rs2,800 billion to the country and its farmers. He said the government had claimed that the inflation rate was 4.5% or 4.7%, but it is now admitting that inflation will rise to 7.5% next year. Muzzammil Aslam noted that Pakistan's GDP this year was Rs114 trillion, and next year it's expected to increase to Rs129 trillion. Despite this, only Rs1 trillion has been allocated for development expenditures and the federal government is not launching any new projects. Likewise, no new projects have been allocated to the provinces. Of the Rs1 trillion development budget, Rs120 billion is from savings that were not provided as fuel subsidies, which are being used to build roads in Balochistan. This means that the actual Public Sector Development Programme (PSDP) is only Rs880 billion. He further stated that under the 'Uraan Pakistan' programme, discussions were held on sports, water, and the environment, and Rs65 billion was initially allocated to higher education. This has now been slashed to Rs45 billion without any consultation with the provinces. Muzzammil Aslam pointed out that the government had earlier said that projects which are more than 75% complete would be prioritized, yet two road projects in Khyber Pakhtunkhwa that were over 90% complete have been deleted, which he called a clear injustice and raised during today's meeting. He questioned, 'If the government claims inflation is being brought down to 1%, why is the interest rate still at 11%.' He said that Rs2 to 2.5 trillion in savings from interest payments this year should be redirected to development projects but it is not happening. He said that according to the Planning Ministry, 118 development projects have been scrapped, while the government is claiming that the growth rate will be 4.2% next year, with inflation at 7.5%. Exports will not increase significantly, but imports will rise, and $39.5 billion in remittance has been estimated. Copyright Business Recorder, 2025
Shafaq News
24-05-2025
- Politics
- Shafaq News
Iraq's Shadow Cities: Inside the rise of informal settlements across the nation
Shafaq News / In eastern Baghdad, 34-year-old Hussein lives in a home he built himself—using cement blocks, scrap metal, and improvisation. He pays no rent, holds no legal deed, and his neighborhood does not appear on any official map. Like millions of others across Iraq, Hussein resides in what has become a parallel urban reality: informal settlements that stretch across the country, growing in size and visibility while remaining largely outside the state's control. According to newly released census data, more than nine million Iraqis—roughly one in twenty citizens—now live in these unauthorized dwellings. Spread across nearly 4,000 sites nationwide, including over 1,000 within Baghdad alone, these settlements have expanded amid population growth, economic dislocation, and the absence of unified urban policy. Most of these neighborhoods lack formal infrastructure: paved roads, clean water, sanitation, electricity, or functioning schools. Built on land designated for agriculture, environmental preservation, or public utility corridors, these zones are legally precarious—and politically sensitive. A Fast-Growing Crisis Iraq's Planning Ministry and Parliament's Services Committee estimate that 28% of the land occupied by informal settlements was originally zoned as green space. 'Entire districts remain cut off from the government's service grid,' MP Mahdiya al-Lami told Shafaq News. 'These areas are not just underdeveloped—they're unrecognized.' Residents face not only legal ambiguity but also social stigma and persistent exclusion from public services. The rapid spread of these settlements is closely tied to Iraq's population growth of nearly one million per year, and migration patterns from underdeveloped provinces like Muthanna and Maysan to urban centers such as Baghdad, Basra, and Mosul. These cities, already strained by outdated infrastructure, are absorbing waves of internal migrants in search of work and stability. 'There's a vacuum where enforcement should be,' al-Lami explained. 'Empty plots become neighborhoods overnight.' She added that not all residents are poor: 'Some already own homes elsewhere but choose to settle here, expecting eventual legalization.' Policy Gaps and Missed Opportunities While the government acknowledges the crisis, its response has been fragmented. Planning Ministry spokesperson Abdul-Zahra al-Hindawi confirmed that informal housing is now part of both the 2024–2028 national development plan and the upcoming poverty reduction strategy. 'These zones were never designed, never serviced, and never regulated,' he told Shafaq News. 'Addressing them will require more than money—it demands coordinated policy, unified governance, and accurate data.' Previous efforts to tackle the issue have largely stalled. A 2017 national program aimed at land reclassification and legal reform was never implemented. A subsequent housing bill was rejected by Parliament twice, with lawmakers objecting to provisions that would offer rent support to unauthorized occupants—arguing it would encourage further encroachment. 'The legislation didn't match on-the-ground realities,' al-Lami said. 'The state can't afford to normalize unregulated expansion.' In January 2025, the Cabinet authorized local governments—excluding Kirkuk—to sell occupied municipal land directly to residents with permanent structures. The move bypasses auctions but imposes tight eligibility requirements. However, implementation has been slow and inconsistent due to the absence of national oversight. Iraq has also partnered with UN-Habitat to develop frameworks for land registration, zoning reform, and service integration. However, experts caution that international blueprints alone cannot resolve deeply rooted structural issues. 'This isn't about empty land,' economist Karim al-Hilu told Shafaq News. 'It's about disconnected ministries, outdated laws, and unreliable data.' Al-Hilu estimates that up to 70% of residents in informal settlements are not in poverty. 'Many are exploiting systemic loopholes. Without a clear mechanism to classify and prioritize needs, interventions won't be effective.' The Risk of Doing Nothing Urban planners warn that a demolition-led approach without alternatives could trigger widespread unrest. 'Clearing a slum without offering a path forward invites chaos,' said al-Hilu. 'This is an institutional void, not just a squatter issue.' While countries facing similar challenges have adopted models like cooperative housing, subsidized rentals, and relocation tied to employment, Iraq's current legal and administrative systems are not prepared to scale such programs. The broader danger, experts argue, is the continued growth of a parallel Iraq—an unofficial nation within the nation, where millions live without legal recognition, state protection, or reliableservices.
Business Recorder
22-05-2025
- Business
- Business Recorder
PSDP budget proposals against indicative ceiling reviewed
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal Wednesday chaired a meeting to review PSDP Budget proposals against the Indicative Budget Ceiling Rs1,000 billion allocated to federal ministries and divisions for FY 2025-26 by Finance Ministry. During the meeting, the minister stressed the importance of effective prioritisation in budget allocation in light of the reduction in PSDP budget size for the next year, directing ministries to focus on most critical projects and projects in advanced stages for completion. He said this while emphasising the need to follow Finance Division's indication of Rs1,000 billion for next financial year PSDP as compared to ministries demand of Rs3,000 billion and Planning Ministry's demand of a minimum of Rs1,600 billion. Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 During the meeting, which was attended by secretaries and senior officers of federal ministries and divisions, the minister emphasised that ministries should ensure full utilisation of funds in the ending year for faster completion of projects, and new projects should be prioritised in order of their significance to national development agenda, URAAN Pakistan. 'With a shrinking development budget, it is now more important to prioritise effectively and save every penny released by Planning Ministry from being misused.' During the meeting, the minister also hinted at the current challenges faced by Pakistan's masses, stressing on the ongoing water shortage as an urgent problem that needs to be solved with foremost priority. He underscored the importance of completing the Diamer-Bhasha Dam project within the stipulated time to fulfil the water security needs of the country. Calling it a vital project for Pakistan's economic growth, water management, and energy security, the minister said that it will not only contribute significantly to Pakistan's water reservoir capacity but also help mitigate flood risks and ensure a steady water supply for irrigation and domestic use. Directing officials from Water Resources Division to prioritise early completion of the Diamer Bhasha Dam, he said that its construction will play a transformative role in Pakistan's long-term development and sustainability as it will generate 4,500 megawatts of electricity. Furthermore, the minister directed officials from all ministries to prepare a list of important and critical projects which risk suffering at the cost of reduction in development budget. Copyright Business Recorder, 2025
