Total national uplift outlay of Rs4.224tr approved

ISLAMABAD: The National Economic Council (NEC) under the chairmanship of Prime Minister Shehbaz Sharif, Wednesday approved the national development outlay of Rs4.224 trillion (Rs4,224 billion), including federal Public Sector Development Program (PSDP) of Rs1,000 billion for the next budget.

The real GDP growth has been envisaged at 4.2 per cent of GDP and CPI-based inflation at 7.5 per cent for FY2025-26.

PM Shehbaz Sharif chaired the NEC meeting, where he declared Pakistan’s victory in the recent ‘Battle of Truth’ on May 10, attributing the historic victory to professional competence and bravery of Pakistan’s armed forces.

“India’s threats to deprive Pakistan of its water resources are unacceptable. Following our victory in the ‘Battle of Truth’, we will also, God willing, defeat India in the struggle to safeguard our waters,” said PM Shehbaz. He announced a special consultative meeting with all provincial chief ministers to formulate a robust strategy for protecting Pakistan’s water resources.

The premier further asserted that economic stability in the country had become possible due to joint efforts of the Federation and provinces, noting that Pakistan was now on the path to economic growth.

In line with this economic trajectory, the NEC unanimously approved its six-point agenda, including the Annual Development Plan (ADP) for fiscal year 2025-26, with a total outlay of Rs4,224 billion. Of this, Rs1,000 billion will be allocated to federal development programmes and Rs2,869 billion to provincial development projects.

The meeting was briefed that the national development programme for 2024-25 was being executed with a total spending of Rs3,483 billion, comprising Rs1,100 billion from the federal government and Rs2,383 billion from the provinces.

The revised economic estimates were also shared, including approval of GDP growth targets: 2.7pc for the current fiscal year and 4.2pc for the next fiscal year. It was reported that from July 2024 to April 2025, remittances increased by 30.9pc, and for the first time, the current account balance turned positive.

The fiscal deficit for FY2024-25 was curtailed to 2.6pc of GDP, while the primary balance stood at a surplus of 3pc. Policy interest rates had dropped to 11pc, and credit to the private sector rose to Rs681 billion during July 2024 to May 2025.

The size of Pakistan’s GDP for 2024-25 was projected to reach Rs114 trillion, equivalent to $411 billion.

The NEC also approved the 13th Five-Year Plan (2024-2029) and the Uraan Pakistan Framework, declaring both to be mutually aligned. Third-party monitoring reports on ongoing development projects were also presented, with the council deciding to incorporate their recommendations in future planning.

The prime minister emphasized prioritising health, education, infrastructure, water sector and housing in upcoming development initiatives. He appreciated the consensus shown in the meeting, stating that such unity on national matters was vital for Pakistan’s bright future.