Summary:
The National Economic Council (NEC) approved an indicative national development plan worth Rs3.792 trillion for the next fiscal year, aiming to boost economic growth to 3.6% from the current 2.4%. The federal Public Sector Development Programme (PSDP) was increased by more than 47% to Rs1.4 trillion, along with additional investments in public-private partnership (PPP) projects and state-owned entities.
Provincial demands for development projects were met, resulting in a total allocation of Rs2.095 trillion for provincial annual development plans. The NEC decision to continue funding ongoing provincial projects addressed concerns raised by chief ministers of all four provinces, focusing on equitable distribution and development priorities.
The growth target, set at 3.6%, aims to be supported by various sectors like agriculture, industry, and services. While external debt repayments may impact forex reserves, other factors like remittances and exports are expected to balance the financial pressures.