Islamabad, 5 June 2025: NEC Development Budget targets a significant leap in national growth planning, as Prime Minister Shehbaz Sharif chaired a high-level meeting of the National Economic Council (NEC) on Wednesday to approve Pakistan’s Annual Development Plan for the fiscal year 2025–26.
The meeting greenlit a development outlay totaling Rs. 4.224 trillion, assigning Rs. 1 trillion to federal initiatives and over Rs. 2.8 trillion to provincial spending. Officials also endorsed a GDP growth target of 4.2 percent for the upcoming fiscal year, following a revised estimate of 2.7 percent for FY2024–25.
The NEC Development Budget approval followed unanimous support for a six-point agenda aimed at reinforcing macroeconomic stability and growth.
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Attendees emphasized tighter coordination between federal ministries and provincial governments, under the Ministry of Planning’s guidance, to effectively implement projects in priority areas such as healthcare, education, infrastructure, water management, and affordable housing.
A strategic framework the 13th Five-Year Plan (2024–2029) was formally adopted during the session, alongside the “Uraan Pakistan Framework,” both of which were described as mutually reinforcing roadmaps for long-term development.
A third-party evaluation of the current year’s development spending was also presented, with the Council agreeing to integrate its findings into future project planning to improve accountability and effectiveness.
In a comprehensive briefing, participants were informed that Rs. 3.483 trillion is being spent under the ongoing 2024–25 national development plan including Rs. 1.1 trillion at the federal level and Rs. 2.383 trillion across provinces.
The prime minister also cited robust remittance flows showing a 30.9 percent increase from July 2024 to April 2025 and highlighted a current account surplus for the first time in years. Inflation control efforts have led to a reduction in the policy rate to 11 percent, while private sector lending rose to Rs. 681 billion during the same period.
Officials forecast Pakistan’s GDP at Rs. 114 trillion, or approximately $411 billion, for FY2024–25. The fiscal deficit was curtailed to 2.6 percent, with a primary surplus of 3 percent.
Amid rising regional challenges, Prime Minister Sharif used the forum to condemn India’s recent rhetoric, calling it a threat to regional peace. He warned against attempts by New Delhi to exert control over Pakistan’s water resources, declaring such actions unacceptable.
The premier announced plans to convene a separate meeting with all chief ministers to devise a joint national strategy for protecting Pakistan’s water rights. “The federation and provinces will work in close partnership to defend every drop of our rightful share,” he asserted.
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The NEC Development Budget discussions also acknowledged agriculture’s pivotal role in driving growth and foreign reserves. A new policy is being formulated to steadily boost crop production and rural livelihoods.
The session concluded with a unified endorsement of all agenda items. Prime Minister Sharif thanked the provincial leadership and cabinet members for their consensus, stating that such cooperative decision-making was essential to steering Pakistan toward economic progress and political stability.
