PM to approve Rs47 trillion development plan today

Prime Minister Shehbaz Sharif will chair an important meeting of the National Economic Council (NEC) today. The

Prime Minister Shehbaz Sharif will chair an important meeting of the National Economic Council (NEC) today. The meeting will approve the country’s economic framework and development priorities for the fiscal year 2026-27.

The council is expected to approve a national development programme worth Rs47 trillion. The plan will outline major public investment projects and economic targets for the coming year.

According to official proposals, the government has set an overall economic growth target of 4 percent. The services sector is expected to grow by 4.2 percent. Industrial growth has been projected at 4 percent, while the agriculture sector is expected to expand by 3.8 percent.

The government has also proposed an annual inflation target of 8.2 percent. The target reflects efforts to maintain price stability while supporting economic growth and development activities.

Sources said the upcoming federal budget may include relief measures for consumers and importers. Customs duties on several imported cosmetic products are likely to be reduced by 2 to 5 percent. The products under consideration include blush, face powder, eyeliner, mascara, makeup kits, lip gloss, face shiners and various skincare creams.

The government is also working on arrangements with provinces regarding financial resources. Coalition partners have reportedly agreed to form technical committees to prepare a mechanism for obtaining nearly Rs12 trillion from the provinces.

Officials said discussions between the federal government and provinces remained one of the key challenges during budget preparations. The budget announcement had to be postponed twice due to difficulties in reaching a consensus among coalition partners and provincial governments.

The federal government was seeking an agreement under which provinces would keep their share under the National Finance Commission (NFC) Award at the same level as the previous fiscal year. However, negotiations took longer than expected, delaying final budget preparations.

Economic managers believe the NEC meeting will play a crucial role in finalizing development priorities, fiscal targets and resource allocations. The decisions taken during the meeting are expected to shape Pakistan’s economic strategy and public spending plans for the next financial year.

The government hopes that higher development spending, improved economic activity and coordinated fiscal policies will support growth, create employment opportunities and strengthen overall economic stability during FY2026-27.