The meeting, likely to be chaired by Prime Minister Shehbaz Sharif, will also approve the annual development plan
India, New Zealand sign free trade deals, cut fruit tariffs, boost exports, ease visas, deepen economic ties.PHOTO: PIXABAY
ISLAMABAD:
The National Economic Council (NEC) is expected to approve a Public Sector Development Program (PSDP) worth approximately Rs 1.5 trillion for the coming financial year during 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 recommendations after consultations with provinces, which have submitted funding claims based on their respective priorities.
Sources revealed that the finance ministry had initially proposed a PSDP cap of Rs 1.126 billion. for the financial year 2026-2027. However, due to increased demands from federal and provincial development projects, the proposed size has now increased to around Rs 1.5 trillion.
Despite this increase, the amount remains significantly lower than the Rs.2.9 trillion requested by the Ministry of Planning. Around Rs 70 billion is likely to be allocated to parliamentarians’ Sustainable Development Goals (SDG) schemes.
Prime Minister Shehbaz has reportedly directed that development funds be allocated based on performance, prioritizing sectors showing strong performance. In this regard, the railway, IT and power divisions are expected to receive special attention to speed up reforms and development initiatives.
Sources said ministries and departments have sought over Rs 4 trillion for around 286 ongoing and new projects. However, the government focuses on the timely implementation of ongoing schemes rather than launching new ones.
Large water reservoirs and hydropower projects, including Dasu, Diamer-Bhasha and Mohmand dams, remain top priorities, with significant allocations expected in the upcoming budget due to their importance.
