ISLAMABAD: The National Economic Council (NEC) is expected to approve a federal development budget of around Rs1,126 billion for the upcoming fiscal year 2026–27, alongside key economic growth targets for agriculture, industry, and services sectors.
According to official sources, the NEC meeting will be held on Wednesday under the chairmanship of Prime Minister Shehbaz Sharif, with participation from chief ministers of all four provinces, as well as representatives from Azad Jammu and Kashmir and Gilgit-Baltistan.
The proposed Public Sector Development Programme (PSDP) shows an increase of Rs289 billion compared to the revised current year allocation of Rs837 billion.
Officials said the largest share—about Rs730 billion—will be allocated for infrastructure development projects. Around Rs408 billion is expected to be spent on transport and communication, while Rs187 billion has been proposed for social sector development, including education and health.
Other allocations include Rs140 billion for water projects, Rs135 billion for energy, Rs44 billion for science and IT, and Rs70 billion for Sustainable Development Goals (SDGs)-related initiatives.
The Higher Education Commission and education sector are expected to receive Rs78.5 billion, while health projects may get Rs24.3 billion. Special areas, including AJK and Gilgit-Baltistan, are likely to receive Rs80 billion, and Rs66 billion has been proposed for merged districts.
The Annual Plan Coordination Committee (APCC), chaired by Planning Minister Ahsan Iqbal, has already given preliminary approval to the PSDP framework. The final approval will be sought from the NEC.
Officials also indicated that economic growth targets for the next fiscal year are being set at 4 percent for GDP growth, 4 percent for industry, 3.8 percent for agriculture, and 4.2 percent for services.
For the current fiscal year, GDP growth is estimated at 3.7 percent, below the 4.2 percent target.
Speaking to journalists after the APCC meeting, Ahsan Iqbal said around Rs10 trillion would be required to complete ongoing development projects across the country. He noted that development spending had declined significantly in recent years, slowing infrastructure growth and project completion.
He added that about Rs5 trillion worth of projects are currently under execution, while new proposals worth Rs720 billion are also under consideration for the next fiscal year.
The minister said a large portion of the federal budget continues to go toward debt servicing, leaving limited fiscal space for development spending.
The NEC is expected to give final approval to the PSDP and annual development plan with possible minor adjustments.
