The National Economic Council (NEC):

A national development budget of Rs3.669 trillion for the fiscal year 2026–2027 was approved by the National Economic Council (NEC) on Wednesday. A 4% GDP growth objective was established, along with Rs838 billion in foreign aid.

Shehbaz Sharif, the prime minister, presided over the meeting. Additionally, he approved Rs451 billion for state-owned businesses (SOEs) and Rs1 trillion for the federal Public Sector Development Programme (PSDP). Additionally, he approved Rs 2.218 trillion for programs aimed at provincial development.

The Four-Point Agenda of NEC:

A four-point agenda and updated economic indicators for the departing fiscal year 2025–2026 were unanimously adopted by the NEC. Additionally, NEC is giving Rs355 billion for SOEs, Rs2,938 billion for provincial development initiatives, and Rs820 billion for the federal PSDP. A 3.7 percent GDP growth objective for 2025–2026 was agreed by the council.

The NEC called on public institutions, provincial administrations, and federal ministries to work closely with the Ministry of Planning in its directions. since they wish to fulfill the goals outlined in the Annual Plan 2026–2027.

The Performance Report for 2025/26:

The Central Development Working Party (CDWP) and the Executive Committee of the NEC (ECNEC) presented their performance reports for the period of April 2025 to March 2026. During this time, the ECNEC authorized 72 projects totaling Rs5.117 trillion, while the CDWP approved 116 projects totaling Rs316 billion.

According to sources, the NEC also authorized federal savings from provincial shares under the NFC Award for 2026–2027 of over Rs800 billion.

A new monitoring and review policy was highlighted in a report on major projects for 2025–2026. However, the Pakistani government also has a trial project that uses artificial intelligence (AI) to assess development efforts.

The Ministry for Planning and Development and Prime Minister:

Eleven national economic development missions were authorized by the NEC under the Uraan Pakistan program.

In collaboration with pertinent ministries and provincial authorities, the Ministry for Planning and Development was entrusted with creating a plan for these missions. Prime Minister Sharif expressed gratitude to the attendees for their unanimous approval of every item on the agenda. Additionally, Mr. PM emphasizes that reaching an agreement on national problems is essential to Pakistan's prosperous future and strengthens the federation.

Decisions were made "in the best interest of Pakistan as a team," he said, highlighting the significance of cooperation and unity between the federal and provincial administrations. especially while drafting the upcoming national budget.

The prime minister said that Rs128 billion in gasoline assistance has been given to protect consumers in response to rising global oil prices.

He emphasized the importance of mobilizing more resources and commended provincial governments for their collaboration.

The Commitment to The International Monetary Fund (IMF) Programme:

Sharif reiterated Pakistan's dedication to the International Monetary Fund (IMF) agenda and credited collaboration for recent economic successes. Funding for defense was also emphasized, with more funds intended to deal with persistent security issues like terrorism.

Strengthening healthcare, enhancing child health, educating children who are not in school, generating jobs for young people, and developing technical and professional skills are important development goals.

Later, Minister for Planning Ahsan Iqbal told reporters that the NEC has decided to convene quarterly.

The Provincial Development Allocations:

He spoke into detail about the 2026–2027 province development allocations, which were Rs749 billion for Punjab, Rs706 billion for Sindh, Rs455 billion for Khyber Pakhtunkhwa, and Rs308 billion for Balochistan.

Infrastructure receives Rs. 206 billion, energy receives Rs. 116 billion, water resources receive Rs. 103 billion, the social sector receives Rs. 180 billion, and governance receives Rs. 13 billion.

Rs687 billion was authorized for development projects for federal ministries and divisions, consisting of Rs119 billion in foreign aid and Rs568 billion in local financing.

Rs313 billion, comprising Rs177 billion in local funding and Rs136 billion in foreign aid, was approved for enterprises like the National Highway Authority (NHA) and electricity companies.

Additional funding includes Rs74 billion for education, Rs41.4 billion for the IT industry, and Rs88.8 billion for Gilgit-Baltistan and Azad Jammu and Kashmir (AJK). including Rs355.9 billion for communications and transportation and Rs45 billion for the Higher Education Commission (HEC).

Rs22.1 billion for health, Rs54.6 billion for housing and physical planning, and Rs63 billion for Sustainable Development Goals (SDGs) initiatives. Additionally, the NEC granted Rs8 billion for industrial development, Rs12.6 billion for the manufacturing sector, Rs4.6 billion for food and agriculture, and Rs56.1 billion for the combined districts of Khyber Pakhtunkhwa.

The Bottom Line:

Prime Minister Shehbaz Sharif is in charge of the National Economic Council (NEC). For the fiscal year 2026–2027, the council formally approved these numbers into a combined National Development Budget of Rs 3.669 trillion. However, the entire development framework was reduced by almost 25% in a major move toward fiscal restraint under IMF supervision. In the meantime, the Federal PSDP is being reduced to Rs 1.0 trillion and the final Provincial Annual Development Programme (ADP) to Rs 2.218 trillion.