Govt eyes 4.2pc GDP growth for FY26

With an improved 4.2 per cent economic growth forecast for next year, the Ministry of Planning and Development cautioned on Monday about the re-emergence of external sector pressure amid easing import control and debt repayments. “The external sector may face pressure, as easing import controls and debt repayments are likely to widen the current account deficit,” said the Ministry of Planning and Development in its Annual Plan 2025-26. However, it forecast strong remittances and export recovery and anticipated external financing to cushion these pressures and support external sustainability. Yet, the planning ministry did not forecast any major increase in industrial sector output compared to the current year, which missed most of the targets set for various sectors of the real economy.