ISLAMABAD: The National Economic Council (NEC) is expected to approve a massive PKR 3,795 billion development budget for the fiscal year 2025–26, according to official sources.
This significant move highlights the federal and provincial governments’ focus on infrastructure, public services, and economic expansion through targeted development funding.
The meeting will be chaired by Prime Minister Shehbaz Sharif, with all four provincial chief ministers — including Punjab CM Maryam Nawaz Sharif, Sindh CM Murad Ali Shah, KP CM Ali Amin Gandapur, and Balochistan CM Sarfraz Bugti — expected to attend.
Provincial and Federal Allocations Breakdown
The federal government is projected to receive PKR 1,000 billion in development spending under the new budget. At the provincial level, Punjab is allocated the highest share with an expected budget of PKR 1,188 billion, followed by Sindh at PKR 887 billion, Khyber Pakhtunkhwa with PKR 440 billion, and Balochistan with PKR 280 billion.
Sources also indicate that approval will be given for several Public-Private Partnership (PPP) projects, aimed at increasing investment and reducing reliance on government funding for major infrastructure initiatives.
The NEC will also formally approve the upcoming Five-Year Development Plan, setting the direction for medium-term economic planning and growth.
Key Economic Targets for Fiscal Year 2025–26
The NEC is poised to set a GDP growth target of 4.2% for FY26, with sector-specific targets also being finalized. The agriculture sector is expected to aim for 4.5% growth, while industrial growth will be targeted at 4.3%, and the services sector at 4%.
On the external front, the exports target is likely to be fixed at $35 billion, while imports are projected at $65 billion. Remittances are expected to contribute significantly, with a target of $39 billion.
These targets and allocations, once approved, will form the backbone of Pakistan’s development and economic strategy for FY26.
