NEC approves historic Rs4.2 trillion development budget for 2025-26
The National Economic Council (NEC) chaired by Prime Minister Shehbaz Sharif Wednesday approved a historic Rs 4,224 billion national development outlay for the fiscal year 2025-26, reported 24NewsHD TV channel.
The NEC session, attended by top federal ministers and the chief ministers of all four provinces, also greenlit the 13th Five-Year Plan (2024–2029) and the Uraan Pakistan framework.
The approved development budget includes Rs 1,000 billion for federal projects and Rs 2,869 billion for provincial development schemes. The annual plan prioritises key sectors including infrastructure, agriculture, water security, health, education, and housing.
The macroeconomic framework set forth targets a 4.2% GDP growth for 2025-26, up from the current year’s revised target of 2.7%. The gross national product for 2024-25 is projected at Rs 114 trillion or approximately $411 billion. A briefing during the meeting revealed that remittances had increased by 30.9% from July 2024 to April 2025, while the current account remained in surplus — a first in recent fiscal cycles.
Prime Minister Shehbaz Sharif hailed the joint efforts of the federation and provinces in steering the country towards economic stability.
“The country is firmly on the path of economic development. This recent economic stability has only been made possible through the joint efforts of the federation and provinces,” he said.
He added that the decrease in the fiscal deficit to 2.6% of the gross national product and the maintenance of a 3% primary surplus reflected prudent financial management.
With the policy rate dropping to 11% and private sector lending increasing to Rs 681 billion, the Prime Minister noted that “timely policy interventions have started yielding results, but this is just the beginning.”
Beyond economics, the NEC meeting took a sharply strategic turn as the Prime Minister addressed India’s recent belligerent rhetoric, particularly threats regarding Pakistan’s water resources.
“India’s narrative is not only irresponsible but poses serious threats to regional peace,” he warned. “India’s threats to deprive Pakistan of its water resources are unacceptable. Just as we emerged victorious in the Maarka-e-Haq, Insha Allah, we will also defend and protect our water rights with full force.” The Prime Minister announced that a special meeting would be held with all provincial chief ministers to formulate a comprehensive national water security strategy.
“The federation and provinces will move as one to protect Pakistan’s water sovereignty,” he emphasised.
The meeting was also briefed on the progress of national development projects approved by the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) from April 2024 to March 2025. A third-party monitoring report was presented to ensure future project planning is guided by transparency and data-driven recommendations.
The NEC directed all relevant ministries and provincial governments to coordinate with the Ministry of Planning to meet the targets of the newly approved Annual Development Plan.
Prime Minister Shehbaz Sharif expressed satisfaction at the unanimous approval of all agenda items. “This consensus is our strength. Such unanimity on national issues is the guarantee of Pakistan’s bright future,” he stated.
He thanked the participants, which included Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal, Information Minister Attaullah Tarar, Advisor Rana Sanaullah, and the chief ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
Reiterating his commitment to economic resilience and national unity, Prime Minister Shehbaz concluded, “We will move forward together, economy in one hand, sovereignty in the other.”