The National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, has approved the Annual Development Plan for 2025–2026, allocating Rs. 4.224 trillion for national development projects.

Budget Breakdown

• Federal Development Expenditures: Rs. 1,000 billion
• Provincial Development Expenditures: Rs. 2,869 billion

Additionally, the NEC set a GDP growth target of 4.2% for the upcoming fiscal year, following a 2.7% growth rate for 2024–2025.

Key Approvals & Priorities

The NEC unanimously approved a six-point agenda, including the macroeconomic framework and targets for FY26. Ministries, provinces, and government institutions were directed to collaborate with the Ministry of Planning to ensure successful implementation.

Priority sectors for development include:
✅ Health
✅ Education
✅ Infrastructure
✅ Water Management
✅ Housing

Strategic Plans & Monitoring

The meeting also approved the 13th Five-Year Plan (2024–2029) and the Uraan Pakistan Framework, both designed to align long-term national development strategies.

A third-party monitoring report on the Annual National Development Program was presented, with recommendations set to guide future project planning.

Economic Performance & Future Outlook

The NEC reviewed revised economic indicators for FY24–25, highlighting:
📈 Total Development Spending: Rs. 3,483 billion
📈 Federal Allocation: Rs. 1,100 billion
📈 Provincial Allocation: Rs. 2,383 billion

Other key economic updates:

• Remittances increased by 30.9% from July 2024 to April 2025.
• Fiscal deficit reduced to 2.6% of GDP, with a primary surplus of 3%.
• Policy rate declined to 11%, boosting private sector borrowing to Rs. 681 billion.
• Projected GDP for FY24–25: Rs. 114 trillion ($411 billion).

National Security & Water Resources

During the meeting, Prime Minister Shehbaz Sharif addressed India’s recent statements, calling them irresponsible and a threat to regional peace. He emphasized Pakistan’s commitment to protecting its water resources and announced a special meeting with all chief ministers to formulate a national strategy.

Conclusion

The NEC’s approvals mark a significant step toward economic stability and growth, with a focus on development, infrastructure, and national security. The government aims to strengthen collaboration between federal and provincial entities to ensure successful implementation of the FY26 development plan.

For more updates on Pakistan’s economic policies, stay tuned!