The meeting, likely to be chaired by Prime Minister Shehbaz Sharif, will also approve the annual development plan
India and New Zealand sign free trade deal, cut fruit tariffs, boost exports, ease visas and deepen economic ties.PHOTO: PIXABAY
ISLAMABAD:
The National Economic Council (NEC) is expected to approve a Public Sector Development Program (PSDP) worth around Rs1.5 trillion for the next financial year at its meeting scheduled for June 3.
The meeting, 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 its recommendations after consulting with the provinces, which have submitted funding requests based on their respective priorities.
Sources revealed that the Finance Ministry had initially proposed a PSDP ceiling of Rs 1,126 billion for the financial year 2026-27. However, due to increasing demand from federal and provincial development projects, the proposed size now stands at around Rs 1.5 trillion.
Despite this increase, the amount remains significantly lower than the Rs2.9 billion requested by the Ministry of Planning. Around 70 billion rupees are expected to be allocated to parliamentarians’ projects in support of the Sustainable Development Goals (SDGs).
Prime Minister Shehbaz reportedly ordered that development funds be allocated based on performance, prioritizing sectors demonstrating strong results. In this regard, the railways, information technology and energy sectors should be given special attention in order to accelerate reforms and development initiatives.
Sources said the ministries and divisions have sought over Rs 4 trillion for around 286 ongoing and new projects. However, the government is trying to complete ongoing projects on time 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 next budget due to their importance.
