Latest news with #Rs4.224
Business Recorder
7 hours ago
- Business
- Business Recorder
Budget 2025–26: PSDP set at Rs1 trillion with focus on infrastructure, social development
Under the federal budget for FY2025–26, the government has allocated Rs4.224 trillion for the Public Sector Development Programme (PSDP), reflecting a continued focus on infrastructure expansion and social development. According to official documents, the Federal PSDP will receive Rs1,000 billion, while Rs2,869 billion has been allocated to provincial Annual Development Plans (ADPs). Additionally, Rs255 billion will be provided to state-owned enterprises (SOEs) for development projects. Officials stated that 60 per cent of the Federal PSDP will be allocated to core infrastructure projects, including roads, railways, and connectivity corridors. In contrast, provincial governments will spend the bulk of their development budgets on education, health, water, and other social sector initiatives. 'This distribution is a direct outcome of the devolution of powers under the 18th Constitutional Amendment,' a Planning Commission official said. Key projects Major projects under the Federal PSDP include: Karachi–Chaman N-25 Motorway (813 km): This strategic highway will link Karachi to Afghanistan via Khuzdar, Kalat, Quetta, and Chaman. Hyderabad–Sukkur Motorway: Rs15 billion has been allocated for this vital section of the north-south trade route. Thar Coal Rail Connectivity Project: Rs7 billion will support rail infrastructure for transporting lignite coal. Gidani Shipbreaking Yard Upgradation: Rs1.9 billion is set aside for modernisation and environmental improvements in the maritime sector. The development plan aligns with the government's '5Es' framework and the broader 'Uraan Pakistan' vision, aiming to achieve key Sustainable Development Goals (SDGs) through targeted investments in economic and social infrastructure.
Business Recorder
6 days ago
- Business
- Business Recorder
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
Business Recorder
6 days ago
- Business
- Business Recorder
NEC approves national development budget worth Rs4.22trn for next fiscal year
The National Economic Council (NEC) on Wednesday unanimously approved six-agenda items, including national development budget worth Rs4.224 trillion for the next fiscal year (FY26), Radio Pakistan reported. The approval was granted at the NEC meeting held in Islamabad with Prime Minister Shehbaz Sharif in the chair and with all the four provincial chief ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan in the presence. It was told that Rs1 trillion would be earmarked for the federal and Rs2.87 trillion for the provincial development projects. Unregistered taxpayers: 4% 'further sales tax' to be abolished The forum also approved macroeconomic framework and targets for the next fiscal year. The council directed relevant ministries, provinces, and government institutions to work in collaboration with the Ministry of Planning to achieve the targets set in the proposed annual plan for 2025-2026. The development projects would prioritise health, education, infrastructure, the water sector, and housing, Radio Pakistan reported. The NEC gave approval to the 13th five-year development plan and the Uraan Pakistan Framework, it said. As per the details, a third-party monitoring report on the annual National Development Programme was presented, and the meeting decided that future project planning should incorporate the recommendations of the report. The NEC also approved a gross domestic product (GDP) growth rate of 2.7% for the outgoing fiscal year and a projected growth rate of 4.2% for the next financial year. During the meeting, revised indicators regarding the performance of the economy in outgoing fiscal year 2024-25 were presented. The meeting was informed that Rs3.483 trillion was being spent on the annual national development, of which Rs1.100 trillion was share of the federation and Rs2.383 trillion was the share of provinces. Budget talks with IMF successful: PM Shehbaz The meeting was told that remittances increased by Rs30.9% from July 2024 to April 2025 and the current account balance remained positive for the first time. The fiscal deficit in the year 2024-25 further decreased to 2.6% of the GDP, while the primary balance remained 3% of the GDP after increase. The policy rate gradually decreased to 11% due to government policies, while loans given for private sector development increased to Rs681 billion from July 2024 to May 2025. The volume of GDP in 2024-25 will be Rs114 trillion.
