NEC approves Rs1tr federal development budget

ISLAMABAD: The National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, has approved a Rs1 trillion federal development budget for the upcoming fiscal year 2025-26. The council also set the national GDP growth target at 4.2% and endorsed an export target of $35 billion as part of the government’s macroeconomic strategy. The meeting at the Prime Minister’s House was attended by provincial Chief Ministers Maryam Nawaz (Punjab), Sarfraz Bugti (Balochistan), Ali Amin Gandapur (Khyber Pakhtunkhwa), and Murad Ali Shah (Sindh).

The NEC reviewed the Public Sector Development Programme (PSDP), the National Development Plan, and macroeconomic targets, discussing sectoral growth goals in agriculture, industry, and services. According to Planning Commission sources, the council gave formal approval to the Rs1 trillion development outlay. On the regional front, a revised funding package of Rs100 billion was approved for the N-25 highway project in Balochistan, reduced from an earlier proposed Rs120 billion.

Significant allocations include Rs147 billion for the Ministry of Water Resources, Rs20 billion for the Dasu Hydropower Project, Rs35 billion each for the Diamer-Bhasha and Mohmand dams, and Rs8.2 billion for the Karachi Bulk Water Supply project. Rs9.4 billion have been allocated for the Karachi K-IV water project. Rs500 million were earmarked for the Special Investment Facilitation Council (SIFC), Rs4.7 billion for Science and Technology, Rs4 billion for SUPARCO, and Rs50 billion for parliamentarian schemes. The Ministry of Climate Change will receive Rs2.7 billion.

The National Highway Authority (NHA) is set to receive Rs302 billion. This includes Rs11.4 billion for the DG Khan N-55 project, Rs7 billion for the Hoshab-Khuzdar M-8 section, and Rs40 billion each for the Khuzdar-Kuchlak, Karachi-Quetta, and Kuchlak-Chaman sections. Rs30 billion have been proposed for the Hyderabad-Sukkur Motorway.

The Ministry of Defence will receive Rs11.5 billion. Rs4 billion have been allocated for the New Gwadar Airport, Rs19.2 billion for education, Rs9 billion for model schools in AJK and Gilgit-Baltistan, Rs4.3 billion for the PM’s Youth Skills Program, and Rs16.2 billion for development in special regions and provinces. Khyber Pakhtunkhwa’s provincial development budget includes just Rs550 million, while Sindh’s projects will receive Rs47.4 billion. Flood-affected areas are allocated Rs20 billion, and Karachi will get Rs2.5 billion for industrial road projects, along with Rs4 billion for the Sindh Coastal Highway. Rs6 billion each will go to the Nawabshah-Ranipur and Sanghar N-5 highways. Balochistan is set to receive Rs93 billion in development funds.

The merged districts of Khyber Pakhtunkhwa are allocated Rs70.4 billion, AJK Rs45 billion, and Gilgit-Baltistan Rs37 billion. Rs45 billion have been allocated to the Higher Education Commission (HEC) for 140 projects nationwide. The Ministry of IT will receive Rs13.5 billion, with Rs4 billion going to the Karachi IT Park and Rs5 billion for Islamabad’s Technology Park.

The Ministry of Interior has secured Rs11 billion for 16 projects, including Rs3 billion for the Islamabad Safe City project, Rs2.5 billion for NADRA’s Digital Economy initiative, Rs2 billion for the Islamabad Development Package, Rs1.1 billion for the H-16 model jail, and Rs1.7 billion for the Ministry of Law. Rs1.1 billion have been earmarked for the G-10 Court Facilitation Center, while the Ministry of Maritime Affairs will receive Rs3.3 billion. Rs2 billion have been approved for the Gadani Ship Breaking Industry.

Read more: Federal Budget 2025–26 Finalised: Outlay Set at Rs17.5 Trillion, Focus on Austerity and Tax Reforms

Health-related initiatives are set to receive Rs15.3 billion, with Rs5 billion allocated for the Quaid-e-Azam Health Tower at Jinnah Medical Complex in Karachi. The Pakistan Atomic Energy Commission will receive Rs4.7 billion, and the Ministry of Planning Rs12.42 billion. An additional Rs8 billion have been earmarked for flood rehabilitation in Balochistan.

The Ministry of Energy will receive Rs104 billion, including Rs16 billion for NTDC system improvement, Rs16 billion for the Dasu Transmission Line, and Rs5 billion for the Rahim Yar Khan–Bahawalpur 220 kV line. Pakistan Railways has been allocated Rs24 billion, with Rs9.3 billion set aside for the Thar Coal Railway Line and Rs7 billion for procurement of cargo wagons and coaches.