4% growth target set: Rs3.669trn uplift outlay approved by economic council

ISLAMABAD: The National Economic Council (NEC) on Wednesday approved a Rs3.669 trillion national development outlay for the fiscal year 2026-27, including Rs838 billion in foreign aid and set a GDP growth target of 4 percent.

The meeting, chaired by Prime Minister Shehbaz Sharif, also sanctioned Rs1 trillion for the federal Public Sector Development Programme (PSDP), Rs2.218 trillion for provincial development programmes, and Rs451 billion for state-owned enterprises (SOEs).

The NEC unanimously approved a four-point agenda and revised economic indicators for the outgoing fiscal year 2025-26, allocating Rs820 billion for the federal PSDP, Rs2,938 billion for provincial development programmes, and Rs355 billion for SOEs. The council approved a GDP growth target of 3.7 percent for 2025-26.

READ MORE: Rs27bn proposed for 20 uplift projects

In its directives, the NEC urged federal ministries, provincial governments, and public institutions to collaborate closely with the Ministry of Planning to achieve the targets set in the Annual Plan 2026-27.

The meeting reviewed performance reports from the Central Development Working Party (CDWP) and the Executive Committee of the NEC (ECNEC) for April 2025 to March 2026. During this period, the CDWP approved 116 projects worth Rs316 billion, while ECNEC sanctioned 72 projects valued at Rs5.117 trillion.

Sources said the NEC also approved approximately Rs800 billion for federal savings from provincial shares under the NFC Award for 2026-27.

A report on mega projects for 2025-26 was presented, highlighting a newly formulated monitoring and review policy, which includes a pilot project to evaluate development initiatives using artificial intelligence (AI).

Under the Uraan Pakistan initiative, the NEC approved 11 national economic development missions.

The Ministry for Planning and Development was tasked with preparing a roadmap for these missions in coordination with relevant ministries and provincial authorities. Prime Minister Sharif thanked participants for unanimously approving all agenda items, emphasising that consensus on national issues strengthens the federation and is key to Pakistan’s bright future.

He highlighted the importance of unity and collaboration between federal and provincial governments, noting that decisions were taken “in the best interest of Pakistan as a team,” particularly while preparing the forthcoming national budget.

Addressing rising global oil prices, the prime minister stated that Rs128 billion in fuel relief had been provided to shield consumers.

He praised provincial governments for their cooperation and stressed the priority of mobilising additional resources.

Sharif reaffirmed Pakistan’s commitment to the International Monetary Fund (IMF) programme, attributing recent economic achievements to collective teamwork. Defence funding was also highlighted, with additional allocations aimed at addressing ongoing security challenges, including terrorism.

Key development priorities include strengthening healthcare, improving child health, providing education for out-of-school children, creating youth employment, and developing technical and professional skills.

Later, in a briefing to journalists, Minister for Planning Ahsan Iqbal said the NEC had agreed to hold meetings on a quarterly basis.

He detailed the provincial development allocations for 2026-27: Punjab Rs749 billion, Sindh Rs706 billion, Khyber Pakhtunkhwa Rs455 billion and Balochistan Rs308 billion.

Sectoral allocations include Rs206 billion for infrastructure, Rs116 billion for energy, Rs103 billion for water resources, Rs180 billion for the social sector, and Rs13 billion for governance.

For federal ministries and divisions, Rs687 billion was approved for development projects, comprising Rs568 billion in local funding and Rs119 billion in foreign aid.

For corporations such as the National Highway Authority (NHA) and power companies, Rs313 billion was sanctioned, including Rs177 billion locally funded and Rs136 billion in foreign assistance.

Additional allocations include Rs88.8 billion for Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan, Rs41.4 billion for the IT sector, Rs74 billion for education – including Rs45 billion for the Higher Education Commission (HEC) – Rs355.9 billion for transport and communications, Rs54.6 billion for physical planning and housing, Rs22.1 billion for health, and Rs63 billion for Sustainable Development Goals (SDGs) programmes. The NEC also approved Rs56.1 billion for the merged districts of Khyber Pakhtunkhwa, Rs12.6 billion for the production sector, Rs4.6 billion for food and agriculture, and Rs8 billion for industrial development.

Copyright Business Recorder, 2026