NEC Sanctions Rs. 4.2 Trillion Budget, Targets 4.2% Growth

In a high-level meeting chaired by Prime Minister Shehbaz Sharif, the National Economic Council (NEC) gave the green light to the Annual Development Plan for the fiscal year 2025–2026.

A significant development budget of Rs. 4,224 billion was approved. It includes Rs. 1,000 billion for federal and Rs. 2,869 billion for provincial development initiatives.

The Council also ratified the macroeconomic framework for the upcoming fiscal year, including a GDP growth target of 4.2 percent for FY2025–26, up from 2.7 percent set for 2024–25.

Strategic Planning & National Agenda

The NEC meeting adopted a 6-point national agenda and called upon all ministries, provinces, and government bodies to collaborate closely with the Ministry of Planning to ensure the targets are met. Priority sectors include health, education, infrastructure, housing, and water management.

In a significant move, the Council approved the 13th Five-Year Plan (2024–2029) and the newly introduced “Uraan Pakistan Framework”, both of which are aligned to provide a long-term roadmap for national development. Recommendations from a third-party monitoring report on the current development program will shape future planning efforts.

Acknowledging Economic Progress

The Council was briefed on economic indicators for FY2024–25, showing encouraging trends:

• Rs. 3,483 billion allocated for national development for 2024–25
• 30.9% increase in remittances (July 2024–April 2025)
• Current account in surplus for the first time
• Fiscal deficit narrowed to 2.6% of GDP, and
• Primary surplus at 3% of GDP

The GDP is projected to reach Rs. 114 trillion (approximately $411 billion), while the policy rate dropped to 11% and private sector borrowing surged to Rs. 681 billion.

National Consensus & Unity Against External Threats

Prime Minister Shehbaz Sharif praised the “historic victory in Marka e Haq” and credited the professionalism and bravery of the armed forces.

He condemned India’s “extremely irresponsible” narrative and emphasized, “India’s threats to deprive Pakistan of its water resources are unacceptable.”

To counter potential water aggression, a special meeting with the chief ministers will be convened to develop a unified national strategy.

The PM stressed, “The federation and provinces would work together to successfully safeguard Pakistan’s water resources.”

He highlighted that recent economic improvements were the result of combined federal and provincial efforts, stating, “The country is now on the path to economic growth.” Agriculture was singled out as a cornerstone of this growth, with a dedicated strategy in the pipeline to enhance production.

Prime Minister Shehbaz Sharif concluded the session by thanking all participants for their consensus. He called it a crucial ingredient for the country’s forward momentum. He reaffirmed the government’s commitment to inclusive development and collaborative governance to secure a prosperous future for Pakistan.