Prime Minister Shehbaz Sharif is scheduled to chair a meeting of the National Economic Council (NEC) today to approve the national development outlay and key macroeconomic targets for the federal Budget 2026–27, according to official sources.
The NEC, Pakistan’s highest constitutional forum for economic coordination between the federation and provinces, will review a proposed Rs4.5 trillion development plan alongside the broader economic framework for the next fiscal year.
The meeting will be attended by the chief ministers of all four provinces, federal ministers, and senior officials from economic ministries.
Under the proposed allocation, Rs1.126 trillion has been set aside for the federal Public Sector Development Programme (PSDP), while Rs3.138 trillion will be allocated to provincial development programmes.
An additional Rs450 billion is proposed for development spending by federal state-owned enterprises.
The meeting is taking place after delays in finalising the federal budget, which was postponed twice amid disagreements within the ruling coalition and concerns raised by provinces over resource sharing.
Officials said provinces were reluctant to cap their share under the National Finance Commission Award at the outgoing year’s level.
To address the issue, the federal government has reportedly agreed to form technical committees aimed at developing a mechanism to secure approximately Rs1.2 trillion from provincial surpluses without triggering political disputes.
In addition to development allocations, the NEC is expected to approve key macroeconomic targets for FY2026–27. The government has proposed a GDP growth target of 4 percent, following lower-than-expected growth in the current fiscal year.
The council will also review progress on major infrastructure schemes, assess public-sector investment trends, and examine monitoring reports on large development projects across the country.
Planning Minister Ahsan Iqbal is expected to brief the council on development spending patterns, provincial indicators, and future investment priorities. He is also likely to highlight mounting pressure on the PSDP, as the cumulative throw-forward of federal development projects has reportedly reached Rs10.8 trillion.
Officials estimate that, at current allocation levels, completing the existing pipeline of projects could take close to a decade, even if no new schemes are added. Concerns over cost escalations and delays are also expected to feature prominently in the discussion, with development spending currently accounting for only about 5 percent of the total federal budget.
On the revenue side, the NEC will review proposals to reduce additional customs duty and regulatory duty on selected imported consumer goods. These include cosmetics, perfumes, branded apparel, footwear, and personal care items, with proposed duty reductions ranging from 2 to 5 percent.
Officials said imported dental cosmetic products, artificial hair, and certain eye-makeup items are also under consideration as part of a broader tariff rationalisation plan. The measures are intended to simplify Pakistan’s import duty structure and support economic reforms agreed under the International Monetary Fund programme.
The outcomes of the NEC meeting are expected to shape the final contours of the federal budget and development priorities for the next fiscal year.
