Prime Minister Shehbaz Sharif will chair a meeting of the National Economic Council (NEC) today to finalize Pakistan’s development priorities and key economic targets for the upcoming fiscal year.
As the country’s highest constitutional body for economic planning, the NEC is expected to consider a proposed national development outlay of Rs. 4.5 trillion for Budget 2026-27. The meeting will bring together chief ministers from all four provinces, federal ministers, and senior government officials to discuss the country’s economic roadmap.
Under the proposed allocation, Rs. 1.126 trillion has been earmarked for the federal Public Sector Development Programme (PSDP), while provincial development programs are expected to receive Rs. 3.138 trillion. Additionally, around Rs. 450 billion has been proposed for federal state-owned enterprises.
The NEC meeting comes after delays in the federal budget process, largely due to discussions within the ruling coalition and negotiations with provinces over resource distribution under the National Finance Commission (NFC) Award. Reports suggest the government may establish technical committees to develop a mechanism for securing nearly Rs. 1.2 trillion in provincial support without creating political tensions.
The council is also expected to approve major macroeconomic targets for FY2026-27, including a proposed GDP growth target of 4 percent following slower-than-anticipated growth during the outgoing fiscal year.
In addition to budgetary allocations, participants will review progress on major infrastructure initiatives, public-sector investment trends, and monitoring reports on ongoing development projects nationwide.
Planning Minister Ahsan Iqbal is likely to present a detailed overview of development spending, economic performance, provincial indicators, and future investment priorities. He is also expected to highlight concerns regarding the growing burden on the PSDP, as the total throw-forward liability of federal development projects has reportedly reached Rs. 10.8 trillion. At current funding levels, completing the existing pipeline of projects could take several years, even without introducing new schemes.
The meeting may also address persistent structural challenges in development spending, including project delays, rising costs, and the relatively small share of PSDP allocations within the overall federal budget.
On the trade front, the government is reviewing proposals to reduce additional customs duties and regulatory duties on selected imported consumer goods. Potential tariff cuts of 2 to 5 percent are being considered for products such as cosmetics, perfumes, branded apparel, footwear, and personal care items.
The review further includes imported dental cosmetic products, artificial hair, and certain eye makeup products as part of a broader tariff rationalization strategy. The initiative aims to simplify Pakistan’s import duty framework and align it with the country’s economic reform commitments under the IMF program.
