ISLAMABAD: The National Economic Council (NEC) has approved a national development budget of Rs 4,224 billion for 2024-25 in an NEC meeting. The meeting, chaired by Prime Minister Shehbaz Sharif, was attended by the chief ministers of all four provinces, who were briefed on revised figures related to the performance of the economy and development priorities for the upcoming fiscal year.
It was informed in the meeting that a total of Rs 3,483 billion is being spent for the National Development Program during the current fiscal year, out of which Rs 1,100 billion has been allocated for the development projects of the federal government and Rs 2,383 billion for the provincial governments.
According to the NEC statement, a growth rate target of 2.7 percent has been set for the current fiscal year, while a GDP growth target of 4.2 percent has been approved for the upcoming fiscal year 2025-26. The briefing further stated that remittances increased by 30.9 percent during July 2024 to April 2025, while the current account balance remained positive for the first time.
While giving a briefing on the status of fiscal discipline, the officials said that the fiscal deficit has reduced to 2.6 percent of GDP, while the primary balance has increased to 3 percent. Due to government policy measures, the policy rate has also decreased, which has now come down to 11 percent.
The participants of the meeting were also informed that loans worth Rs 681 billion have been provided to the private sector for development purposes during July 2024 to May 2025. The country’s gross national product is expected to reach Rs 114 trillion or $411 billion.
Addressing the meeting, the prime minister said that the country is on the path of economic development, the agricultural sector is the main source of growth in the country’s economy, growth rate, and foreign exchange, and an effective strategy is being developed to increase agricultural production.
