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National Economic Council Approves 2026-27 Budget
The National Economic Council (NEC) approved the national development budget and Annual Development Programme for the fiscal year 2026-27 on Wednesday. The meeting, chaired by Prime Minister Shehbaz Sharif, saw participation from federal ministers and three chief ministers.
Punjab Chief Minister Maryam Nawaz attended via video link. The combined provincial development budget was reduced from Rs3.138 trillion to Rs2.218 trillion. Punjab’s allocation was slashed from Rs1.450 trillion to Rs749 billion, the steepest cut among provinces.
Sindh’s budget was reduced from Rs816 billion to Rs706 billion, while Khyber Pakhtunkhwa’s went down from Rs564 billion to Rs455 billion. Balochistan was exempted from cuts, retaining its Rs308 billion allocation intact. The federal development budget also saw a reduction of Rs126 billion.
The council reviewed the current year’s Public Sector Investment Programme and received briefings on provincial ADPs. PM Shehbaz Sharif highlighted Pakistan’s efforts to adhere to the IMF programme despite challenges. He emphasized job creation, export growth, and broader economic improvement as shared responsibilities.
He noted that regional geopolitical tensions had driven up global oil prices, with the government providing Rs128 billion in relief on petroleum costs. The prime minister stressed national unity against terrorism, urging elimination of the menace through unity.
The council agreed to prioritize welfare schemes for public welfare, focusing on education, health, clean water, and communications projects. Close coordination between federal and provincial bodies was deemed essential to achieving development targets.