National Economic Council
The National Economic Council (NEC), under the chairmanship of Prime Minister Shehbaz Sharif, approved Pakistan’s economic targets and the annual development plan for the fiscal year 2025–26 during a high-level meeting held on Wednesday.
The session was attended by the chief ministers of all four provinces, the chief minister of Gilgit-Baltistan, and senior government officials from key ministries and institutions.
For the upcoming fiscal year, the NEC has set an economic growth target of 4.2%, aiming for a gradual recovery amid global and domestic economic challenges. Inflation has been projected at 7.5%, reflecting the government’s efforts to contain price hikes while ensuring sustainable economic progress.
The NEC also approved an annual per capita income target of PKR 560,803. Sector-specific growth projections were laid out, with agriculture expected to grow by 4.5%, industry by 4.3%, and the services sector by 4.0%. These targets are part of a broader strategy to diversify the economy and support inclusive development.
In terms of external sector projections, export earnings are targeted at $35 billion, while imports are expected to reach $65 billion. Meanwhile, remittances from overseas Pakistanis are forecast to total $39 billion, providing vital support to the country’s balance of payments.
The total size of the national development programme has been set at Rs4,083 billion, including Rs1,000 billion allocated for the federal development budget. Within this framework, Rs200 billion has been earmarked for federal state-owned enterprises, while Rs332 billion will be directed to key organisations like the National Highway Authority (NHA).
Provincial allocations under the development budget include Rs1,188 billion for Punjab, Rs887 billion for Sindh, Rs404 billion for Khyber Pakhtunkhwa, and Rs280 billion for Balochistan. Furthermore, Rs662 billion has been set aside for development schemes across 31 federal ministries and divisions.
Major sectoral allocations include Rs140 billion for water resource development, Rs104 billion for electricity projects, Rs24.71 billion for railway infrastructure, and Rs11.55 billion for the Ministry of Defence. The Ministry of Planning has also received Rs12.32 billion for its development initiatives.
Additionally, the budget for the N-25 highway project in Balochistan was revised. While the initial proposal was Rs120 billion, the NEC approved a reduced allocation of Rs100 billion, reflecting a prioritisation of projects and financial prudence.
The NEC’s approvals mark a significant step in shaping Pakistan’s economic trajectory for FY2025–26, focusing on growth, stability, and strategic investments.
