The National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, has approved Pakistan’s Annual Development Plan for 2025–2026, setting a national development budget of Rs. 4,224 billion. Of this, Rs. 1,000 billion is allocated for federal development and Rs. 2,869 billion for provincial projects.
The NEC also endorsed a GDP growth target of 4.2 percent for the next fiscal year, up from the 2.7 percent projected for 2024–2025. The meeting unanimously approved a six-point agenda, including the macroeconomic framework and targets for FY 2025–2026.
Prime Minister Shehbaz Sharif directed ministries, provinces, and government institutions to collaborate closely with the Ministry of Planning to achieve the ambitious targets. Priority sectors include health, education, infrastructure, water, and housing.
The Council also approved the 13th Five-Year Plan (2024–2029) and the “Uraan Pakistan Framework,” noting that both strategies are mutually aligned. A third-party monitoring report on the national development program was presented, with future project planning to be guided by its recommendations.
The meeting was attended by key federal ministers, provincial chief ministers, and other NEC members. During the session, the prime minister congratulated participants on Pakistan’s recent military victory in Marka e Haq and condemned India’s “irresponsible” rhetoric, vowing to protect Pakistan’s water resources against any threats.
Shehbaz Sharif announced plans for a special meeting with all chief ministers to devise a robust strategy for safeguarding the country’s water resources, emphasizing federal-provincial cooperation.
The prime minister credited recent economic stability to joint efforts by federal and provincial governments, highlighting a path toward economic growth. He underscored the importance of agriculture in boosting national reserves and outlined plans for increasing agricultural production.
Briefings during the meeting revealed that remittances surged by 30.9 percent from July 2024 to April 2025, and the current account balance remained in surplus for the first time. The fiscal deficit for 2024–2025 was reduced to 2.6 percent of GDP, with a primary surplus of 3 percent. The policy rate declined to 11 percent, and private sector lending rose to Rs. 681 billion. GDP for 2024–2025 is projected at Rs. 114 trillion, or $411 billion.
The NEC also reviewed progress reports from the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC) on national development projects.
