NEC to review PKR 4.464 trillion development plan for FY27

Pakistan’s National Economic Council (NEC), the country’s highest economic decision-making body, is scheduled to meet on June 3 to consider a proposed national development outlay of PKR 4.464 trillion for fiscal year 2026-27, government sources said.

The council is expected to review a revised federal development allocation of PKR 1.326 trillion, an increase of PKR 200 billion from the previously proposed PKR 1.126 trillion, reflecting the government’s efforts to accelerate development spending and support economic growth.

Sources said the government will also brief the International Monetary Fund (IMF) on the proposed increase in the federal development budget.

To accommodate the additional spending, the Ministry of Finance and the Federal Board of Revenue (FBR) have been tasked with identifying measures to generate an additional PKR 200 billion in revenues. However, sources said both institutions have opposed a proposal to raise the annual tax collection target from PKR 15.264 trillion to PKR 15.464 trillion, citing revenue limitations.

Instead, officials are exploring alternative fiscal and financial measures to create room for the higher development allocation while maintaining overall budgetary stability.

The proposed national development outlay of PKR 4.464 trillion includes an estimated PKR 3.138 trillion for the four provinces and PKR 1.326 trillion for the federal government.

Under the proposed allocation, Punjab would receive PKR 1.450 trillion, followed by Sindh with PKR 816 billion, Khyber Pakhtunkhwa with PKR 564 billion and Balochistan with PKR 308 billion, according to sources.

The meeting is expected to be attended by Prime Minister Shehbaz Sharif, the chief ministers of all four provinces, provincial finance ministers and the prime minister of Azad Jammu and Kashmir.

The NEC is also expected to review development priorities and approve key economic and fiscal targets ahead of the presentation of the federal budget for fiscal year 2026-27.