ISLAMABAD: Pakistan’s National Economic Council on Wednesday approved a national development budget of Rs3,669 billion ($13 billion) for the next fiscal year, Prime Minister Shehbaz Sharif’s office said, as the country eyes 4 percent gross domestic product (GDP) growth.
Pakistan’s government has twice postponed Federal Budget 2026-27 as it continues consultations with coalition partners over key decisions. It was supposed to release the budget on Jun. 5, before it moved it to Jun. 10.
The budget presentation has now been shifted to Jun. 12 as authorities seek to build consensus on the financial plan, expected to be shaped by revenue targets and reforms linked to Pakistan’s $7 billion International Monetary Fund (IMF) program.
Presiding over an NEC meeting in Islamabad, Sharif thanked chief ministers of all four provinces for their “exemplary cooperation” and his economic team for its efforts for stability in the country, according to the prime minister’s office.
“The meeting also approved the allocation of Rs3669 billion for the national development budget for the fiscal year 2026-27,” Sharif’s office said in a statement.
“The National Economic Council approved a 3.7 percent growth rate of gross national product for 2025-26 and a 4 percent growth rate for the next fiscal year.”
Of the Rs3,669 billion ($13 billion) development budget, the council approved the allocation of Rs1,000 billion ($3.5 billion) for the federal Public Sector Development Program (PSDP), Rs2,218 billion ($7.9 billion) for the provincial development program, and Rs451 billion ($1.6 billion) for state-owned enterprises (SOEs).
“The National Economic Council directed the relevant ministries, provinces and government agencies to work with the Ministry of Planning to achieve goals of the proposed annual plan 2026-2027,” Sharif’s office said.
Pakistan seeks to maintain fiscal discipline under its IMF program while also responding to demands for tax relief and increased social spending. According to officials, the IMF has asked Pakistan to introduce at least Rs430 billion ($1.5 billion) in additional fiscal measures in the upcoming budget, alongside a nearly matching contribution from the provinces.
