NEC Likely to Approve Rs1.5 Trillion Development Program for Next Fiscal Year
Islamabad: The National Economic Council (National Economic Council) is expected to approve a Public Sector Development Programme (PSDP) worth nearly Rs1.5 trillion for the upcoming fiscal year during its meeting scheduled for June 3.
The meeting is likely to be chaired by Prime Minister Shehbaz Sharif and will also approve the annual development plan for the next financial year.
Before the NEC meeting, the Annual Plan Coordination Committee (APCC) is expected to finalize recommendations regarding the PSDP and annual plan. Consultations with provinces are currently underway, with provincial governments seeking allocations according to their respective development priorities.
According to sources, the June 3 NEC meeting will be attended by the chief ministers and finance ministers of all four provinces, along with officials from Azad Jammu and Kashmir and Gilgit-Baltistan.
Sources said the Ministry of Finance had initially proposed a PSDP size of Rs1.126 trillion for fiscal year 2026-27 as the budget ceiling. However, due to increasing funding demands for federal and provincial development projects, the proposed size has now expanded to nearly Rs1.5 trillion. Despite the increase, the amount remains significantly lower than the Rs2.9 trillion requested by the Ministry of Planning.
Around Rs70 billion is expected to be allocated for parliamentarians’ Sustainable Development Goals (SDGs) schemes.
Sources further stated that Prime Minister Shehbaz Sharif has directed authorities to prioritize sectors demonstrating satisfactory performance in the distribution of development funds. Special focus is reportedly being given to the railway, information technology, and power sectors to accelerate ongoing reforms and development initiatives.
Different ministries and divisions have reportedly sought more than Rs4 trillion for around 286 new and ongoing projects. However, the government is said to be focusing mainly on the timely completion of major ongoing schemes rather than launching numerous new projects.
Large-scale water reservoirs and hydropower projects remain among the government’s top priorities. Major projects such as Dasu Dam, Diamer-Bhasha Dam, and Mohmand Dam are expected to receive substantial allocations in the next fiscal year due to their importance for energy production, water storage, and agriculture.
Sources added that meetings of the APCC and NEC are now expected in early June, while the federal budget for fiscal year 2026-27 is likely to be announced during the first half of June 2026.
