The National Economic Council (NEC) has approved a Rs1 trillion federal development budget for the upcoming fiscal year 2025-26 and set the national GDP growth target at 4.2%, along with an annual export target of $35 billion.
The key NEC meeting was chaired by Prime Minister Shehbaz Sharif at the PM House in Islamabad. Chief Ministers Maryam Nawaz (Punjab), Sarfraz Bugti (Balochistan), Ali Amin Gandapur (Khyber Pakhtunkhwa), and Murad Ali Shah (Sindh) were in attendance.
During the meeting, the council reviewed the National Development Plan, Public Sector Development Programme (PSDP), and macroeconomic targets for the upcoming fiscal year. Consultations were held regarding sectoral growth targets for agriculture, industry, and services.
According to sources in the Planning Commission, the NEC formally approved the Rs1 trillion federal development outlay. It also endorsed the 4.2% GDP growth target for FY2025-26 as part of the government’s macroeconomic roadmap.
On the regional development front, the NEC approved a revised funding package of Rs100 billion for the N-25 highway project in Balochistan, reduced from the earlier proposed Rs120 billion.
In a bid to bolster foreign trade, the council also gave the green light to set a $35 billion export target for the next fiscal year.
The federal government earmarked Rs147 billion for the Ministry of Water Resources, Rs20 billion for the Dasu Hydropower Project, Rs35 billion for Diamer-Bhasha Dam, Rs35.7 billion for Mohmand Dam, and Rs8.2 billion for the Karachi Bulk Water Supply project.
Additionally, Rs9.4 billion to be allocated for Karachi’s K-IV project.
Rs500 million was allocated for the Special Investment Facilitation Council (SIFC), Rs4.7 billion for Science and Technology, Rs4 billion for SUPARCO, and Rs50 billion for parliamentarian schemes. The Ministry of Climate Change has been allocated Rs2.7 billion.
The National Highway Authority (NHA) is set to receive Rs302 billion, including Rs11.4 billion for the DG Khan N-55 project, Rs7 billion for the Hoshab-Khuzdar M-8 section, and Rs40 billion each for Khuzdar-Kuchlak, Karachi-Quetta, and Kuchlak-Chaman sections. Rs30 billion have been proposed for the Hyderabad-Sukkur Motorway.
The Ministry of Defence will receive Rs11.5 billion, Rs4 billion are allocated for New Gwadar Airport, Rs19.2 billion for education, Rs9 billion for model schools in AJK and Gilgit-Baltistan, Rs4.3 billion for the PM’s Youth Skills Program, and Rs16.2 billion for special regions and provinces.
For Khyber Pakhtunkhwa, only Rs550 million were allocated, while Sindh’s development projects will receive Rs47.4 billion. Flood-affected areas to receive Rs20 billion. Rs2.5 billion were allocated for roads in Karachi’s industrial area, Rs4 billion for the Sindh Coastal Highway, and Rs6 billion each for the Nawabshah-Ranipur and Sanghar N-5 highways. Balochistan is set to receive Rs93 billion.
Merged districts of Khyber Pakhtunkhwa were allocated Rs70.4 billion, AJK Rs45 billion, and Gilgit-Baltistan Rs37 billion. Rs45 billion will go to 140 Higher Education Commission (HEC) projects. The Ministry of IT were allocated Rs13.5 billion, including Rs4 billion for Karachi IT Park and Rs5 billion for Islamabad Technology Park.
For the Ministry of Interior’s 16 projects, Rs11 billion were approved, including Rs3 billion for Islamabad’s Safe City, Rs2.5 billion for NADRA’s Digital Economy Project, Rs2 billion for the Islamabad Development Package, Rs1.1 billion for the H-16 model jail, and Rs1.7 billion for the Ministry of Law. Additionally, Rs1.1 billion are allocated for the G-10 Court Facilitation Center, Rs3.3 billion for the Ministry of Maritime Affairs, and Rs2 billion for the Gadani Ship Breaking Industry.
Health-related projects were allocated Rs15.3 billion, including Rs5 billion for Quaid-e-Azam Health Tower at Jinnah Medical Complex in Karachi. The Pakistan Atomic Energy Commission will receive Rs4.7 billion, the Ministry of Planning Rs12.42 billion, and flood-hit Balochistan Rs8 billion.
The Ministry of Energy will receive Rs104 billion, including Rs16 billion for NTDC improvement, Rs16 billion for the Dasu Transmission Line, and Rs5 billion for the Rahim Yar Khan–Bahawalpur 220 kV line.
A total of Rs24 billion were allocated for Pakistan Railways, with Rs9.3 billion for the Thar Coal Railway Line and Rs7 billion for the procurement of cargo wagons and coaches.
All these allocations are part of the proposed PSDP for 2025–26, which will be finalized following approval from the National Economic Council.
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