ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif chaired a key meeting of the National Economic Council (NEC) in Islamabad, where a comprehensive agenda for Pakistan’s economic development was approved by consensus.
The premier congratulated the nation and armed forces on what he described as a “historic victory in the Battle of Truth” on May 10, attributing the triumph to the military’s professionalism and bravery.
The Prime Minister condemned India’s recent rhetoric against Pakistan, calling it “highly irresponsible” and a threat to regional peace and stability.
He reaffirmed that the people of Pakistan are united in safeguarding national integrity and sovereignty. He termed India’s threats concerning water resources as unacceptable, vowing that Pakistan would also prevail in this new struggle to protect its vital natural resources.
PM Shehbaz announced that a special meeting with provincial chief ministers would soon be convened to formulate a robust strategy for water security in light of India’s aggressive stance.
He emphasized that the federal and provincial governments would work jointly to ensure sustainable management of Pakistan’s water assets.
On the economic front, the Prime Minister credited recent macroeconomic stability to the joint efforts of the federation and the provinces.
He declared that Pakistan is firmly on the path to economic growth, highlighting agriculture as a key sector driving foreign exchange earnings and GDP growth. A strategy is being developed to gradually increase agricultural productivity, he added.
The NEC unanimously approved a six-point agenda, which included revised economic indicators for the fiscal year 2024-2025.
The council was informed that a total of PKR 3,483 billion will be spent on the Annual National Development Programme, with PKR 1,100 billion allocated by the federal government and PKR 2,383 billion by the provinces.
The council endorsed a GDP growth target of 2.7% for 2024-2025 and 4.2% for the next fiscal year. Remittances increased by 30.9% from July 2024 to April 2025, while the current account turned positive for the first time. The fiscal deficit decreased to 2.6% of GDP, and the primary balance showed a surplus of 3% of GDP.
The briefing also revealed that due to gradual reductions in the policy rate—now at 11%—private sector lending surged to PKR 681 billion between July 2024 and May 2025.
Pakistan’s GDP is expected to reach PKR 114 trillion (approximately USD 411 billion) during 2024-2025.
The NEC approved the Annual Development Plan for 2025-2026 with a total allocation of PKR 4,224 billion, including PKR 1,000 billion for federal and PKR 2,869 billion for provincial projects.
The macroeconomic framework and targets for the upcoming fiscal year were also endorsed.
Relevant ministries, provinces, and state institutions were instructed to coordinate with the Ministry of Planning to achieve the goals set in the 2025-2026 plan. Priority sectors include health, education, infrastructure, water resources, and housing.
The council reviewed the progress report of the Central Development Working Party (CDWP) from April 2024 to March 2025, as well as details of development projects approved by both the CDWP and the Executive Committee of the National Economic Council (ECNEC).
The NEC formally approved Pakistan’s 13th Five-Year Plan (2024–2029) and the “Uraan Pakistan” framework, both described as mutually aligned. A third-party monitoring report on the Annual National Development Programme was also presented, and it was decided that future planning would be informed by its recommendations.
PM Shehbaz Sharif thanked all participants for their unanimous approval of the NEC agenda, stressing that national consensus on key issues is essential for Pakistan’s bright future.
The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Planning Minister Ahsan Iqbal, Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarar, Adviser to the PM Rana Sanaullah, Chief Minister Punjab Maryam Nawaz, Chief Minister Sindh Murad Ali Shah, Chief Minister Khyber Pakhtunkhwa Ali Amin Gandapur, Chief Minister Balochistan Sarfraz Bugti, and other NEC members.
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