Islamabad – The National Economic Council (NEC) has approved a review of the overall National Development Program for the fiscal year 2026-27 to Rs 3.218 trillion, which the government is calling a major effort to strike a balance between economic stability, fiscal discipline and national priorities.
The NEC meeting, chaired by Prime Minister Shehbaz Sharif, reviewed the development plans of the federation and the provinces in detail. It was agreed in the meeting that in view of the current economic conditions, high debt repayments and limited financial resources, it is necessary to make development spending more effective and productive.
As per the revised decision, the overall volume of federal and provincial development programs has been reduced by about 25 percent. Provincial Annual Development Programs (ADPs) have been adjusted according to their actual spending capacity of the current fiscal year to ensure better utilization of resources.
Federal Minister for Planning Ahsan Iqbal told the media after the meeting that the government has decided to focus on completing ongoing development schemes instead of launching new projects in the next financial year. According to him, new schemes will be limited except for a few important projects related to interior and defense.
The NEC meeting also emphasized the need to make the national economy export-oriented. The participants agreed that Pakistan needs to adopt a coherent national strategy to take exports to $100 billion in the next few years. For this purpose, industrial competitiveness, skill development, economic inclusion of women and promotion of investment were given key importance.
Addressing the meeting, Prime Minister Shehbaz Sharif said that the country is facing terrorism and security challenges, due to which it has become imperative to further strengthen defense capabilities. He said that national security and economic development are interrelated and balanced investment in both sectors is necessary.
The meeting also decided that the NEC meetings will be held quarterly instead of once a year to regularly review economic performance, development expenditure and policy goals.
The government has maintained a 4 percent gross domestic product (GDP) growth target for the next fiscal year. This includes an estimated growth of 3.6 percent for the agriculture sector, 4.5 percent for the industrial sector and 4.2 percent for the services sector.
The development program has allocated significant funds for infrastructure, energy, water, transport, education, health and special zones. Officials say that despite limited resources, the government will prioritize projects that can directly contribute to employment, exports and long-term economic growth.
Economists say that although reducing the development budget is a difficult decision, this strategy can become the basis for sustainable economic growth in the future through better fiscal discipline, reduction of debt burden and improvement in the investment climate.
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