The National Economic Council has approved key economic targets for the upcoming fiscal year, with the federal and provincial governments agreeing to reduce development spending and avoid launching new projects.
The federal PSDP has been reduced from Rs1,126 billion to Rs1,000 billion, while the federation and provinces will jointly save Rs1,046 billion in the development budget.
According to documents, the federal government has agreed to spend Rs126 billion less on development projects. The Public Sector Development Programme has been reduced from Rs1,126 billion to Rs1,000 billion.
The NEC also decided that no new development projects will be launched, except those related to the Ministry of Defence and the Ministry of Interior.
Provinces agree to cut development spending
The provinces have agreed to reduce their development budget by Rs920 billion. According to documents, the combined provincial development budget has been reduced from Rs3,138 billion to Rs2,218 billion.
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The federation and provinces will jointly save Rs1,046 billion in development spending.
Provincial development plans
Punjab has approved a development plan of Rs749 billion, down from the earlier proposed Rs1,450 billion. Sindh’s development budget has been reduced from Rs816 billion to Rs706 billion.
Khyber Pakhtunkhwa’s development budget has been reduced from Rs564 billion to Rs455 billion.
آج سب سے بڑا چیلنج دفاع کو مضبوط بنانا ہے، صوبہ بلوچستان اور کے پی کے دہشتگردی میں قربانیاں دے رہے ہیں، اِن قربانیوں کے نتیجے میں باہمی اتفاق و اتحاد سے دہشتگردی کا مکمل صفایا ہوگا، ان شاء اللّٰہ
— Shehbaz Digital Media (@ShehbazDigital) June 10, 2026
~ وزیراعظم شہباز شریف کی قومی اقتصادی کونسل کے اجلاس سے گفتگو pic.twitter.com/vXYP754Nzz
Balochistan will spend Rs308 billion on development projects, and documents state that there will be no future cut in Balochistan’s development budget.
Also Read: KP ready to give Rs180bn share to federation
All four provinces together will spend Rs2,218 billion on development projects. State-owned enterprises will spend Rs451 billion on development schemes.
The NEC also decided to hold meetings every three months to review progress and implementation.
Sector-wise allocations approved
The federal government will spend Rs602 billion on infrastructure projects. A total of Rs116 billion has been allocated for energy projects, while Rs103 billion will be spent on water projects.
The social sector has been allocated Rs180 billion, while Rs41.4 billion has been targeted for science and technology.
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Education, including the Higher Education Commission, has been allocated Rs74 billion.
A development budget of Rs88.8 billion has been allocated for Azad Kashmir and Gilgit-Baltistan, while Rs56 billion has been proposed for the merged districts of Khyber Pakhtunkhwa.
تمام صوبائی وزرائے اعلیٰ کا شکر گزار ہوں جنہوں نے ہر مرحلے پر مشاورت کی، اس طرح وفاق نے بھی صوبوں سے مشاورت کی اور ہم نے پاکستان کے بہترین مفاد میں قومی فیصلے کیے۔ اسی وجہ سے ہماری معیشت میکرو لیول پر مستحکم ہے۔
— Shehbaz Digital Media (@ShehbazDigital) June 10, 2026
~ وزیراعظم شہباز شریف کی قومی اقتصادی کونسل کے اجلاس سے گفتگو pic.twitter.com/MCR1vYcmRn
Other targets
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Export target for the next fiscal year set at $32.85 billion
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Services exports are projected to reach $11.27 billion
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The combined export target for goods and services has been set at $44.13 billion
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Imports of goods are projected at $70 billion for the next fiscal year
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Services imports are estimated at $13.76 billion
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The overall import target for goods and services has been set at $83.78 billion
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Workers' remittances are projected to reach $42.38 billion during the next fiscal year
PM thanks provinces for cooperation
Addressing the NEC meeting, Prime Minister Shehbaz Sharif thanked all chief ministers for their consultation and support regarding the budget. He also prayed for Punjab Chief Minister Maryam Nawaz’s health, saying she was unwell.
The prime minister said the federal government consulted the provinces with seriousness on every issue and that national decisions were taken as a team in Pakistan’s best interest.
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Shehbaz said the country’s economy had faced major challenges but was now stable at the macro level. He said increasing employment opportunities, exports, productivity and economic improvement was a shared responsibility.
The prime minister added that despite difficulties, the government continued efforts to implement the IMF programme.
Oil price pressure and public relief
The prime minister said oil prices started rising sharply due to the regional situation, but the provinces fully cooperated with the federal government. He said the government provided Rs128 billion in relief to the public on oil prices.
Shehbaz Sharif noted that while queues were seen at petrol pumps in many countries, timely measures ensured fuel availability in Pakistan.
The PM said generating more resources was a national priority. He said providing resources for defence was also a priority, especially in view of terrorism-related challenges.
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Shehbaz Sharif said the entire nation, particularly the people of Khyber Pakhtunkhwa and Balochistan, were making sacrifices against terrorism.
He praised the sacrifices of security forces and said the menace of terrorism must be eliminated through unity and consensus.
Focus on exports, industry and agriculture
The premier said the government must focus on employment opportunities, industrial growth, agricultural development and export promotion. He said resources were needed for economic development and incentives would have to be provided to various sectors of the economy.
Shehbaz Sharif said the government’s measures would help increase exports and support economic growth.
The prime minister said he held detailed discussions with the IMF managing director last night. According to Shehbaz Sharif, the IMF MD appreciated Pakistan’s sincere efforts.
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