Development projects across federal, provincial levels: NEC makes over Rs4 trillion FY26 allocation
ISLAMABAD: National Economic Council (NEC) on Wednesday approved the Annual Development Plan and the National Development Budget for the fiscal year 2025-2026, allocating a total of Rs4.224 trillion for development projects across federal and provincial levels.
The NEC meeting, chaired by Prime Minister Shehbaz Sharif, sanctioned Rs1 trillion for federal projects and Rs2.869 trillion for provincial development schemes.
During the meeting, the officials presented revised economic indicators for fiscal year 2024-2025, forecasting annual spending of Rs3.483 trillion on the national development programme, with Rs1.1 trillion allocated to the federal government and Rs2.383 trillion to provinces.
The council approved a Gross National Product (GNP) growth rate of 2.7 per cent for 2024-2025 and projected a 4.2 per cent increase for the next fiscal year. From July 2024 to April 2025, remittances rose by 30.9 per cent, and Pakistan's current account balance was positive for the first time, according to the briefing.
The fiscal deficit narrowed to 2.6 per cent of GNP in 2024-2025, while the primary balance increased to 3 per cent of GNP. The policy rate was gradually reduced to 11 percent and loans to the private sector for development rose to Rs681 billion from July 2024 to May 2025. The GNP size for 2024-2025 is estimated at Rs114 trillion.
The NEC also approved the macroeconomic framework and targets for 2025-2026 and directed ministries, provinces, and government agencies to collaborate with the Planning and Development Ministry to achieve the development plan's goals, prioritising health, education, infrastructure, water, and housing sectors. A report on the Central Development Working Party (CDWP)'s progress from April 2024 to March 2025 was presented, along with details of projects approved by CDWP and the Executive Committee of the National Economic Council (ECNEC) during that period.
The council approved the 13th Five-Year Plan (2024-2029) and the Uraan Pakistan framework, noting their alignment.
A third-party monitoring report on the Annual National Development Programme projects was reviewed, and future planning will incorporate its recommendations.
Prime Minister Sharif congratulated participants on Pakistan's victory in the May 10 'Bunyanum Marsoos,' attributing the success to the Armed Forces' professionalism and bravery. He condemned India's recent hostile narrative, describing it as a threat to regional peace and security. 'The people of Pakistan are fully united against India for the protection of national integrity,' Sharif said, rejecting India's threats to Pakistan's water resources as unacceptable. He vowed to defend these resources following the 'Bunyanum Marsoos.'
In a special meeting with the four provincial chief ministers, PM Sharif emphasised joint efforts between the federation and provinces to develop a strategy to protect water resources amid Indian aggression.
The prime minister highlighted the role of recent federal-provincial cooperation in achieving economic stability and called attention to agriculture as key to boosting foreign exchange earnings and growth. Strategies are being developed to gradually increase agricultural production. The NEC, unanimously, approved its six-point agenda.
PM Sharif thanked members for consensus on national matters, describing it as essential for Pakistan's future.
The meeting included Deputy Prime Minister and Foreign Minister Ishaq Dar, Planning Minister Ahsan Iqbal, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Prime Minister's Adviser Rana Sanaullah, and the four chief ministers – Maryam Nawaz (Punjab), Syed Murad Ali Shah (Sindh), Ali Amin Gandapur (Khyber-Pakhtunkhwa), and Nawab Sarfraz Bugti (Balochistan).
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
PM meets Saudi crown prince to strengthen bilateral relations
Prime Minister Shehbaz Sharif meets Saudi Crown Prince Mohammed bin Salman in Makkah during an official visit to Saudi Arabia on June 6, 2025. PHOTO: Saudi Press Agency Listen to article Prime Minister Shehbaz Sharif met Crown Prince of Saudi Arabia Mohammed bin Salman bin Abdulaziz in Makkah during a two-day official visit on Friday. The meeting saw a constructive exchange of views on strengthening bilateral cooperation across political, economic, and security domains. According to a statement from the Prime Minister's Office, the meeting reaffirmed strategic and fraternal ties between Pakistan and Saudi Arabia, with both leaders highlighting the importance of continuing their strong partnership. Premier Sharif extended heartfelt Eid greetings to His Majesty King Salman bin Abdulaziz and His Royal Highness Mohammed bin Salman, commending the Kingdom's hospitality and exceptional service to Hajj pilgrims from around the world. The statement also extended sincere gratitude for the tremendous efforts of the Custodian of the Two Holy Mosques and the Crown Prince, who ensured a safe and spiritually fulfilling pilgrimage experience. Prime Minister Muhammad Shehbaz Sharif {@CMShehbaz} attended a luncheon hosted in his honour by Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, in Makkah.#PMShehbazInKSA — Government of Pakistan (@GovtofPakistan) June 6, 2025 The PM expressed appreciation for Saudi Arabia's proactive role in mitigating tensions between Pakistan and India. He commended the Kingdom's steadfast commitment to promoting peace and stability in the region and beyond. Highlighting Pakistan's policy of responsible restraint in the face of Indian aggression, PM Sharif underscored that sustainable peace in South Asia can only be achieved through dialogue and cooperation. PM Sharif expressed satisfaction with the growing momentum of these partnerships and reiterated that both countries remain committed to elevating this strategic relationship to new heights. The two leaders agreed to further align their efforts with the shared vision of leadership and the aspirations of the brotherly people of both nations, the statement noted. The premier extended an invitation to the crown prince to visit Pakistan at his earliest convenience, which he accepted, reinforcing the mutual commitment to deepening the multifaceted ties between Pakistan and Saudi Arabia. The two also addressed the dire humanitarian situation in Gaza. Both leaders stressed the need for the international community to fulfill its moral and legal obligations to end the suffering and reiterated their unwavering support for a just and durable resolution to the Palestinian issue. They emphasised the importance of the Arab Peace Initiative and the relevant United Nations Security Council resolutions as the foundation for any lasting solution, the statement added. The prime minister was accompanied Deputy Prime Minister and Foreign Minister Ishaq Dar, Chief of Army Staff Field Marshal Syed Asim Munir, Interior Minister Mohsin Naqvi, and Information Minister Attaullah Tarar. وزیرِ اعظم محمد شہباز شریف{@CMShehbaz } اور چیف آف آرمی اسٹاف فیلڈ مارشل سید عاصم منیر نے پاکستانی وفد کے ہمراہ خانۂ کعبہ میں عمرہ کی سعادت حاصل کی، نوافل ادا کیے، اور 'بنیان مرصوص' کی عظیم فتح پر اللہ تعالیٰ کے حضور شکر ادا کیا۔ — Government of Pakistan (@GovtofPakistan) June 6, 2025 Earlier, PM Sharif and Field Marshal Munir, along with senior ministers, performed Umrah late Thursday night during the official visit to Saudi Arabia. In a rare gesture, the door of the Holy Kaaba in Makkah was specially opened for the visiting Pakistani delegation. The leaders offered Nawafil prayers and expressed gratitude for what they described as the success of Bunyanum Marsoos, a reference to ongoing efforts for national unity and resilience. During the sacred pilgrimage, the prime minister and his delegation also offered special prayers of thanks for recent developments in Pakistan's economic and social sectors. Supplications were made for the nation's continued prosperity and stability.
Business Recorder
3 hours ago
- Business Recorder
PM Shehbaz attends special luncheon hosted by Saudi Crown Prince in Makkah
Prime Minister Shehbaz Sharif on Friday attended a special luncheon hosted in his honour by Saudi Crown Prince and Prime Minister Mohammed bin Salman at the Royal Court in Makkah, during his two-day visit to the Kingdom of Saudi Arabia. According to a statement from the Prime Minister's Office, the Crown Prince extended a special welcome to the Prime Minister and personally drove him to the Royal Court, a rare gesture reflecting the depth of bilateral ties between the two nations. The luncheon was also attended by prominent Middle Eastern leaders, members of the Saudi Cabinet, and senior figures from the Kingdom's civil and military leadership. The two leaders held informal talks during the gathering. Officials said the visit and warm reception signify the strength of Pakistan-Saudi Arabia relations, rooted in shared values and mutual strategic interests. The two-day visit comes amid ongoing efforts to deepen cooperation in trade, energy, and investment, and follows recent high-level exchanges aimed at bolstering economic ties and regional collaboration. During the visit, the prime minister will also express Pakistan's appreciation for Saudi Arabia's constructive role in de-escalating recent tensions between Pakistan and India.
Express Tribune
15 hours ago
- Express Tribune
Dar-led body to oversee funding strategies for dams
Listen to article Prime Minister Shehbaz Sharif on Thursday termed India's unilateral suspension of the Indus Waters Treaty (IWT) as "a blatant violation and act of water aggression" and warned that Pakistan will give a befitting response under the decisions taken in the April 24 National Security Committee (NSC) meeting. Chairing a high-level meeting on water resources at the Prime Minister's House, he vowed that, just as Pakistan achieved victory in the recent war, it would also triumph on the water front. Emphasising the urgency of enhancing water storage, PM Shehbaz Sharif ordered the establishment of a high-powered committee under Deputy PM Ishaq Dar to oversee funding strategies for new dam projects. The committee will include all provincial chief ministers, the Prime Minister of AJK, and relevant federal ministers, and is directed to submit its recommendations within 72 hours. "We will prioritize the construction of non-controversial reservoirs. Wherever there is unanimity, we must act without delay. These dams are not political - they are a national necessity," the Prime Minister said. He made it clear that any project with cross-provincial consensus will be fast-tracked and completed on a priority basis. A detailed briefing was given during the meeting on Pakistan's water infrastructure. Officials informed the participants that the construction of the Diamer-Bhasha dam is underway and expected to be completed by 2032, while the Mohmand dam is likely to be completed by 2027. Currently, Pakistan has 11 dams with a total storage capacity of 15.318 million acre-feet. Under the Public Sector Development Programme (PSDP), 32 small and large dams are under construction, while 79 projects are underway under annual development programs. "This is a battle of justice, and like every battle we have fought with unity, we will defeat India's water aggression with resolve and wisdom," said the prime minister. He emphasised that living nations confront challenges head-on and make strategic, lasting decisions to protect their future generations. PM Shehbaz Sharif said that the Indian threats to weaponise water by attempting to violate the 1960 Indus Waters Treaty are increasing each day. He highlighted that the treaty, a binding international agreement, does not allow any party to unilaterally withdraw, and India's claims are politically and legally hollow. All provincial chief ministers, along with the leadership of AJK and Gilgit-Baltistan, strongly condemned India's water threats and unanimously reaffirmed their support for the federal government's position. The Prime Minister lauded this united stance, calling it "a reflection of our collective national resolve to protect Pakistan's water security". PM Shehbaz also pointed to the serious problem of silting in existing reservoirs like Tarbela and Mangla, which has drastically reduced their water retention capacities. He said bold decisions must be taken now, or history will judge today's leadership harshly. "We owe it to our 240 million people to act decisively. This is not about politics — it's about survival. The future generations must remember this leadership with respect for the choices we make today," he declared. PM Shehbaz congratulated the Finance Minister, Economic Affairs Minister, and relevant secretaries for successfully securing loans from the World Bank and Asian Development Bank despite strong Indian lobbying. "India tried to sabotage our projects at the ADB for three days, but failed. Our diplomatic victory is a testament to Pakistan's principled stand and growing credibility," he noted. Concluding the meeting, the Prime Minister reaffirmed his unwavering belief in the collective strength of Pakistan's national, provincial, and military leadership. "Just as our brave armed forces stood firm in the battlefield, we must now stand united in securing every drop of water for our people," he said. The meeting was attended by Deputy Prime Minister Ishaq Dar, Field Marshal COAS General Asim Munir, Defense Minister Khawaja Asif, Planning Minister Ahsan Iqbal, Law Minister Azam Nazir Tarar, Information Minister Attaullah Tarar, Power Minister Owais Leghari, Water Resources Minister Muneeb Wattoo, and other key federal cabinet members. Punjab Chief Minister Maryam Nawaz, Sindh Chief Minister Murad Ali Shah, KP Chief Minister Ali Amin Gandapur, Balochistan Chief Minister Sarfraz Bugti, AJK PM Anwarul Haq, and GB Chief Minister Gulbar Khan were also present, along with senior civil and military officials.
