Pakistan’s NEC approves nearly Rs4tr development budget for FY26

June 04, 2025 (MLN): The National Economic Council (NEC) approved a development budget of Rs3.79 trillion and set economic growth targets for the fiscal year 2026 during a meeting on Wednesday.

The meeting was chaired by Prime Minister Shehbaz Sharif and attended by the chief ministers of all four provinces, as per the press release issued.

The approved development budget allocates Rs1tr for federal government projects, while provincial governments will receive substantial funds for infrastructure and economic initiatives.

Punjab has been granted Rs1.188tr, Sindh Rs887 billion, Khyber Pakhtunkhwa Rs440bn, and Balochistan Rs280bn in development spending.

The council also greenlit Rs288bn State Owned Enterprises (SOEs) investment in projects under Public-Private Partnerships (PPP), aiming to boost economic activity across various sectors.

Economic growth targets were set at 4.2% for FY26, with sector-specific goals including 4.5% growth for agriculture, 4.3% for industry, and 4% for the services sector. In external trade, exports were targeted at $35bn, while imports were projected to reach $65bn.

Additionally, the government set a remittance target of $39bn for the fiscal year.

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