Pakistan's Financial Body approves Rs 4,224 billion for national development budget for FY 25-26

Islamabad: Pakistan's National Economic Council (NCC) chaired by Prime Minister Shehbaz Sharif has unanimously approved the Rs 4,224 billion for national development budget along with 4.2 per cent GDP growth target for the financial year 25-26.

The NCC meeting, attended by four provincial chief ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan, on Wednesday in Islamabad, also announced GDP growth of 2.7 per cent for the current fiscal year ending on June 30, reported Radio Pakistan on Wednesday.

Addressing the meeting, PM Sharif raised the issue of abeyance of Indus Water Treaty (IWT) by India saying, New Delhi's threats to deprive Pakistan of water resources are unacceptable, and “we will defeat India on this front also".  Sharif said the agricultural sector plays a central role in increasing foreign exchange and growth rate, therefore a strategy is being formulated to improve agricultural production.

Soon after the April 22 terrorist attack in Pahalgam, India announced abeyance of the IWT among other punitive measures. The IWT was signed in 1960 by the two countries to address the water dispute between them and to share the waters of the six main rivers of the Indus basin.

Meanwhile, the NEC also approved the 13th five-year development plan and the Uraan Pakistan Framework, a key project to fast-track national economic growth.

The forum also approved the macroeconomic framework and targets for the next fiscal year.

The council directed relevant ministries, provinces, and government institutions to collaborate with the Ministry of Planning to achieve the targets set in the proposed annual plan for 2025-2026.

These development projects will prioritise health, education, infrastructure, the water sector, and housing.

The meeting was told that remittances increased by 30.9 per cent from July 2024 to April 2025 and the current account balance remained positive for the first time.

The policy rate has gradually decreased to 11 per cent due to government policies, while loans given for private sector development increased to Rs 681 billion from July 2024 to May 2025.