The meeting, likely chaired by Prime Minister Shehbaz Sharif, will also approve the annual development plan.
India and New Zealand sign an FTA, reduce fruit tariffs, boost exports, make visas more flexible and deepen economic ties.PHOTO: PIXABAY
ISLAMABAD:
The National Economic Council (NEC) is expected to approve a Public Sector Development Program (PSDP) worth about Rs 1.5 trillion for the next fiscal year during its meeting scheduled for June 3.
The meeting, which is likely to be chaired by Prime Minister Shehbaz Sharif, will also approve the annual development plan.
Ahead of the NEC session, the Annual Plan Coordination Committee (APCC) is expected to finalize recommendations after consultations with provinces, which have submitted funding demands based on their respective priorities.
Sources revealed that the Finance Ministry had initially proposed a PSDP ceiling of Rs 1,126 billion for the fiscal year 2026-27. However, due to increasing demands from federal and provincial development projects, the proposed size has now increased to around Rs 1.5 trillion.
Despite this increase, the amount is still significantly less than the Rp 2.9 trillion requested by the Ministry of Planning. Approximately Rs 70 billion is likely to be allocated to parliamentarians’ Sustainable Development Goals (SDG) programmes.
Prime Minister Shehbaz has reportedly ordered that development funds be allocated based on performance, giving priority to sectors that demonstrate strong results. In this regard, railways, IT and energy divisions are expected to receive special attention to accelerate reforms and development initiatives.
Sources said ministries and divisions have requested more than Rs 4 trillion for around 286 new and ongoing projects. However, the government is focusing on timely completion of ongoing plans rather than launching new ones.
Large water reservoirs and hydropower projects, including the Dasu, Diamer-Bhasha and Mohmand dams, remain top priorities, with significant allocations expected in the upcoming budget due to their importance.
