Investment Climate

With the start of fiscal year 2026/27 from July 17, the government has started implementing the new budget of Rs. 2,124 billion. It seeks to fuel an economy of Rs. 6,600 billion, an ambitious goal backed by a huge popular mandate. It has set the objectives of achieving a 7 per cent annual growth and generating 1.5 million jobs in five years. The sweeping governance reforms, policy overhaul and private sector-led initiatives form its strategies to give momentum to the sluggish economy plagued by endemic corruption, red-tape, low capital spending, lackluster performance of national pride projects, rising recurrent expenditures for bloated administrative and political structures, soaring trade-deficit and weak manufacturing. The present government has been in office for around four months. However, it is yet to effectively implement measures to boost capital expenditures so that the past shortcomings are not repeated again.