The federal cabinet, chaired by Prime Minister Shehbaz Sharif in Islamabad on Tuesday, has approved the budget proposals for the fiscal year 2025-26.

The proposed budget outlines a GDP growth target of 4.2% for the upcoming fiscal year. Finance Minister Muhammad Aurangzeb is set to present the budget in the National Assembly later today.

Details from the budget document reveal a projected current account deficit of 2.1 billion dollars, which accounts for -0.5% of the GDP.

The revised National Development Plan allocates over Rs4,223 billion for various development projects across the country, with Rs2,869 billion assigned to the Public Sector Development Programme (PSDP).

Federal ministries and divisions are set to receive over Rs682 billion for their respective projects, while the National Highway Authority is allocated Rs226.98 billion.

The Power Division will receive Rs90.22 billion, and the Water Resources Division will be allocated Rs133.42 billion under the PSDP.