National Economic Council clears ambitious development outlay, targets economic stability and coordinated federal-provincial growth strategy
The National Economic Council (NEC) on Wednesday approved a national development budget of Rs3.669 trillion for the fiscal year 2026-27 and set a GDP growth target of 4 percent for the upcoming year.
The meeting, chaired by Prime Minister Shehbaz Sharif, endorsed key fiscal allocations and reviewed overall economic performance, development planning and governance reforms aimed at sustaining macroeconomic stability and accelerating growth.
Key development allocations approved
Under the approved framework, the NEC allocated:
• Rs1,000 billion for the Federal Public Sector Development Programme (PSDP)
• Rs2,218 billion for provincial Annual Development Programmes (ADPs)
• Rs451 billion for State-Owned Enterprises (SOEs) development initiatives
The council also revised the GDP growth estimate for FY2025-26 to 3.7 percent, reflecting updated macroeconomic projections and performance indicators.
Focus on project execution and monitoring reforms
During the meeting, officials reviewed the performance of the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC).
According to the briefing, 116 development projects worth Rs316 billion were approved by CDWP between April 2025 and March 2026, while ECNEC cleared 72 projects valued at Rs5.117 trillion.
A monitoring report on mega development projects was also presented. It highlighted the introduction of a new evaluation framework, including a pilot initiative using Artificial Intelligence (AI) to assess development project outcomes.
New development missions under Uraan Pakistan
The NEC approved 11 national economic development missions under the Uraan Pakistan initiative. The Ministry of Planning and Development has been tasked with preparing a detailed roadmap for implementation in coordination with federal ministries and provincial governments.
Officials also briefed the council on ongoing development spending, including Rs820 billion under the federal PSDP, Rs2.938 trillion under provincial ADPs, and Rs355 billion for SOE programmes during FY2025-26.
Prime Minister stresses unity and long-term planning
Prime Minister Shehbaz Sharif thanked participants for their consensus on the agenda and said cooperation between the federation and provinces would strengthen national development efforts.
He highlighted population growth, education, healthcare, malnutrition and youth employment as key structural challenges, stressing the need for long-term policy solutions.
The prime minister reiterated that an export-led growth strategy, vocational training, and improved coordination between federal and provincial development plans were essential for sustainable economic progress.
He expressed confidence that collective efforts would help Pakistan achieve long-term stability, growth and economic self-reliance.
