ISLAMABAD: Prime Minister Shehbaz Sharif has praised provincial governments for their cooperation in tackling Pakistan’s economic challenges, saying that macroeconomic stability has been achieved through joint efforts at the federal and provincial levels.
He made these remarks while addressing a meeting of the National Economic Council (NEC), which reviewed key budget proposals, development priorities, and economic targets for the upcoming fiscal year.
“Decisions Taken in Pakistan’s Best Interest”
The prime minister said that despite significant economic pressures, the government worked collectively to stabilise the economy.
“We made decisions in the best interest of Pakistan as a team,” PM Shehbaz said.
He acknowledged that Pakistan had faced difficult financial conditions but credited teamwork and coordination with provinces for helping restore stability.
Fuel Relief and Economic Challenges
PM Shehbaz highlighted the impact of rising global oil prices, noting that regional tensions had pushed energy costs higher.
He said the government provided around Rs128 billion in relief to shield consumers from fuel price shocks.
The prime minister also pointed out that while many countries experienced fuel shortages and long queues at petrol stations, Pakistan managed to maintain supply stability through timely interventions.
Focus on IMF Programme and Fiscal Discipline
The prime minister said Pakistan continued to align its policies with the International Monetary Fund (IMF) programme despite challenges.
He emphasized that improving resource management and expanding fiscal capacity remained top priorities.
Shehbaz Sharif also stressed that ensuring adequate funding for defence, particularly in the context of rising security threats and terrorism, would remain a key focus in the upcoming budget.
NEC Approves Rs3.66 Trillion Development Budget
Briefing the meeting, Planning Minister Ahsan Iqbal announced that the NEC approved a national development plan worth Rs3.66 trillion.
The breakdown includes:
- Rs1 trillion federal development allocation
- Rs2.21 trillion provincial development spending
- Rs451 billion for state-owned enterprises
The council also agreed to hold NEC meetings on a quarterly basis to improve coordination and monitoring.
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Growth Targets and Economic Priorities
The NEC set a 4% GDP growth target for the next fiscal year. Sector-wise targets include:
- Agriculture: 3.6%
- Industry: 4.5%
- Services: 4.2%
Inflation is projected at 8.2%, while water security has been identified as a major national priority.
Ahsan Iqbal noted that debt servicing continues to consume nearly 74% of government revenue, calling it Pakistan’s biggest structural challenge. He also warned that the external sector remains under pressure, urging efforts to boost exports and attract foreign investment.
Call for “Development Emergency”
The planning minister stressed that Pakistan needs what he described as a “development emergency” to accelerate economic growth, pointing out that development spending as a share of GDP has sharply declined in recent years.
He added that under the federal development plan, no new projects will be launched except those related to education and defence.
The NEC meeting highlighted both Pakistan’s ongoing economic challenges and the government’s attempt to maintain stability through coordination with provinces, fiscal discipline, and medium-term development planning. While officials expressed cautious optimism, concerns over debt servicing, external pressures, and inflation continue to shape the country’s economic outlook.
