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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
