ISLAMABAD: An important meeting of the National Economic Council (NEC) is being held under the chairmanship of the Prime Minister today in which the annual development plan, economic targets and federal and provincial development programmes for the upcoming fiscal year 2026-27 will be reviewed. The meeting is being described as very important in terms of setting the direction of the country’s economy, as the government is keen to increase development expenditure on the one hand while also fulfilling the financial commitments made to the International Monetary Fund (IMF).
According to sources, a total of Rs 4.715 trillion worth of federal and provincial development programmes will be presented before the National Economic Council. Along with the approval of the annual plan 2026-27, the meeting will also review the economic targets and performance of the current fiscal year.
The Planning Commission will inform the meeting that the target of the Gross National Product (GDP) growth rate for the upcoming fiscal year has been set at 4 per cent, while the inflation rate is expected to remain at 8.2 per cent. According to officials, efforts will be made to boost economic activities through improvements in the agricultural, industrial and service sectors.
The meeting will also consider a proposal to increase the size of the federal Public Sector Development Program (PSDP). Initially, a development programme of Rs 1.126 trillion was proposed, but it is likely that the National Economic Council may increase this amount to more than Rs 1.3 trillion to provide more resources for important national projects.
The Planning Commission’s monitoring report has identified challenges facing development projects. According to the report, several ongoing projects across the country could not be completed on time due to lack of financial resources, delays in land acquisition, legal complications, procurement problems and administrative weaknesses. The report says that about 79 percent of projects are delayed while 25 percent of projects are facing cost overruns.
The development priorities of provincial governments will also be discussed in the National Economic Council meeting. The chief secretaries of the four provinces will present their respective annual development programmes and inform about the progress in various sectors.
Government officials say that the process of economic recovery in Pakistan is underway, and the targets for the next fiscal year are a link in this chain. However, to achieve these targets, fiscal discipline, stability in the external sector and effective policy measures will be indispensable.
Experts say that the decisions of the National Economic Council will directly impact the development priorities, investment trends and economic growth prospects of the next fiscal year. That is why today’s meeting has become the centre of special attention not only of the federal and provincial governments but also of the business community and investors.
