In a high-stakes session chaired by Prime Minister Shehbaz Sharif, Pakistan’s National Economic Council (NEC) convened in Islamabad to finalize and approve key economic targets and development plans for the upcoming fiscal year 2024-25. The meeting, attended by federal ministers, chief ministers, and senior economic advisors, marked a pivotal step in laying down the nation’s developmental roadmap amid ongoing economic challenges and reform efforts.

The council approved several major targets and development allocations, including a national growth target, an ambitious five-year development framework, and a record public-sector development budget. The comprehensive economic strategy reflects the government’s resolve to stimulate growth, tackle regional disparities, and navigate economic pressures through strategic investment and policy coherence.

GDP Growth Target Set at 3.6%

One of the most significant decisions taken by the NEC was the approval of a 3.6% GDP growth target for the fiscal year 2024-25. This goal, while modest, is considered realistic by economic analysts given the global economic climate, Pakistan’s recent structural reforms, and constraints posed by debt servicing and fiscal deficits.

Officials stressed that the growth projection aligns with IMF-backed stabilization policies, while still allowing room for strategic investments in infrastructure, exports, and social protection.

Five-Year Development Plan Approved

The council gave its principal approval to the 13th Five-Year Development Plan, which will guide economic and social development through a multidimensional approach. The new framework focuses on inclusive growth, environmental sustainability, human capital development, and regional equity.

Key features of the plan include:

• Development of underprivileged and remote regions, including Balochistan and South Punjab.

• Investment in small and medium-sized enterprises (SMEs) to drive employment and innovation.

• Expanded social safety nets aimed at reducing poverty and economic vulnerability.

• Strengthening of climate resilience and green economy initiatives.

• Enhancement of export potential and value-added sectors.

The plan seeks to balance long-term vision with short-term action, providing a blueprint for coordinated efforts across federal and provincial levels.

Rs 3.79 Trillion National Development Budget

The NEC approved a consolidated development budget of Rs 3,792 billion, with the Federal Public Sector Development Programme (PSDP) allocated Rs 1,500 billion. Of this amount, Rs 100 billion is earmarked for projects under the Public-Private Partnership (PPP) framework, reflecting the government’s push to leverage private capital for infrastructure and innovation.

The remaining Rs 2,095 billion will be utilized by provinces under their respective Annual Development Programs (ADPs). This collaborative budgeting approach emphasizes fiscal decentralization while ensuring national priorities are addressed uniformly.

Export and Remittance Targets Announced

To enhance external sector stability, the NEC set a $40.5 billion export target for FY 2024-25, focusing on diversification, innovation, and access to new markets. Special incentives for textile, IT, agriculture, and engineering sectors are expected to be part of the upcoming federal budget.

Additionally, remittances from overseas Pakistanis are projected at $30.2 billion, a target the government hopes to achieve through streamlined remittance channels, diaspora engagement, and improved banking infrastructure.

Focus on Equitable Development

Prime Minister Shehbaz Sharif emphasized that the government is committed to a growth model that is both sustainable and inclusive. He directed that development funds prioritize historically neglected regions and sectors that have the potential to drive broad-based prosperity.

“There can be no national progress without regional equity,” the Prime Minister said, adding that collaboration between the federal and provincial governments would be vital for implementing NEC decisions effectively.

Institutional Coordination and Fiscal Responsibility

Participants in the meeting highlighted the need for improved coordination among ministries and provincial departments. With fiscal constraints looming and IMF oversight ongoing, the government reaffirmed its commitment to transparent spending, outcome-based budgeting, and avoiding politically driven projects that do not offer tangible returns.

It was also agreed that projects and initiatives would be regularly monitored and evaluated for performance and impact, with public accountability measures integrated into the development cycle.

Public Expectations and Challenges Ahead

While the NEC’s agenda and decisions were met with cautious optimism, experts warn that execution remains the biggest hurdle. Energy prices, inflation, and exchange rate volatility continue to affect business sentiment and household incomes. Ensuring timely fund disbursement, procurement transparency, and institutional efficiency will be crucial for turning targets into results.

However, analysts acknowledge that the NEC meeting signals a strong policy alignment across federal and provincial levels and reflects the government’s intent to focus on long-term reforms rather than short-term populist measures.

Conclusion

The NEC meeting marks an important milestone in Pakistan’s economic planning for FY 2024-25. By setting realistic growth targets, endorsing a comprehensive development strategy, and emphasizing equity and fiscal responsibility, the government aims to steer the country toward macroeconomic stability and inclusive development. The coming months will be critical in translating these policy commitments into on-ground progress.

Reference:  قومی اقتصادی کونسل کا اجلاس آج ہوگا، بجٹ اہداف اور ترقیاتی پلان کی منظوری متوقع