Chaired by PM, the council also sanctions 13th five-year national development plan besides setting annual economic growth targets for next financial year. Shehbaz says govt will ensure best utilization of available resources for economic revival, welfare of masses and country’s development.
ISLAMABAD - The National Economic Council (NEC) on Monday approved the national development outlay of Rs3.792 trillion for the Fiscal Year 2024-25 and 13th Five-Year Plan.
The NEC also approved GDP growth at 3.6pc and inflation at 12pc during the FY 2024-25, official source told The Nation.
The national development outlay has been enhanced by over 40 percent (Rs 1.083 trillion) from the original Rs 2.709 trillion, approved by the NEC for the ongoing fiscal year 2023-24, to Rs 3.792 trillion in the upcoming FY 2024-25.
The meeting of the NEC chaired by Prime Minister, Shehbaz Sharif has approved national development outlay of Rs 3.792 trillion, 13th five-year national development plan along with the annual economic growth targets for the financial year 2024-25 and macroeconomic framework for annual planning. Interestingly, not a single figure of the National Development Outlay, Annual Plan or any other data, approved by the NEC, was shared in the official press statement.
The national development outlay includes the federal PSDP of Rs1500 billion, which includes Rs 1400 billion of government funding and Rs 100 billion for Public Private Partnership (PPP), Rs 2095 billion for the provincial Annual Development Plan and Rs 197 billion for the proposed investment by federal state owned enterprises development plans/projects funded by the Ministries/Divisions, the source said.
It is worth to note here that the Annual Plan Coordination Committee (APCC) had earlier approved the Public Sector Development Program (PSDP) at Rs 1221 billion and Rs 185 billion for the proposed investment by federal state owned enterprises development plans/projects in FY 2024-25 provided by the Ministries/Divisions.
The NEC has approved an allocation of Rs 824 billion for the infrastructure projects, including Energy, Transport & Communications, Water and Physical Planning & Housing, which is Rs 332 billion higher than the allocations of Rs 492 billion during the ongoing fiscal year. Allocation for Energy has been increased from Rs 81 billion to Rs 253 billion, Transport and Communications from Rs 265 billion to Rs 279 billion, Water from Rs 100 billion to Rs 206 billion, and physical planning &housing from Rs 46 billion to Rs 86 billion.
The allocation for social sector i.e health, education including HEC and SDGs achievement Programme and other social sector has been increased by Rs 36 billion from the existing Rs 244 billion to Rs 280 billion during FY 2024-25.
The health allocation enhanced from Rs 24 billion to Rs 45 billion, Education including HEC from Rs 84 billion to Rs 93 billion, other social sector has been increased from Rs 46 billion to Rs 67 billion. While allocations for the SDGs has been proposed to be decreased from Rs 90 billion to Rs 75 billion. Allocation for Special Areas (AJ&K,GB) have been enhanced from Rs 61 billion to Rs 75 billion, for the merged districts of Khyber Pakhtunkhwa Rs 64 billion has been proposed against the ongoing fiscal Rs 58 billion. The forum has approved an allocations of Rs 79 billion in the upcoming PSDP for Science &IT higher then Rs 34 billion during ongoing fiscal, for governance the allocations has been increased from Rs 12 billion to Rs29 billion, for Production Sectors i.e. Food & Agriculture and Industries, Rs 42 billion and Rs 8 billion respectively.
Addressing the NEC Prime Minister Shehbaz Sharif said the government will ensure best utilization of available resources for economic revival, welfare of the masses and development of the country.
He said the Federation will ensure consultations with the provinces and other stakeholders in all key decisions with collective approach and consensus to be taken for economic revival in the country.
He said National Economic Council is the biggest forum to take decisions on national economy and economic revival.
The Prime Minister directed the National Economic Council to constitute a committee to equip the Council with requirements of the modern era.
It is also worth to mention here that APCC had proposed to allocate Rs 877 billion for the infrastructure projects, including Energy, Transport & Communications, Water and Physical Planning & Housing, which is Rs 324 billion higher than the allocations of Rs 553 billion during the ongoing fiscal year. The allocations for social sector i.e. health, Education including HEC and others, has been slashed by Rs 120 billion from the existing Rs 203 billion to Rs 83 billion. No allocation has been proposed for the SDGs. For Special Area (AJ&K,GB) Rs 51 billion has been proposed, Rs 57 billion for merged districts, Science &IT, Rs 104 billion, Governance Rs29 billion, Production Sectors i.e. Food & Agriculture and Industries, Rs 21 billion. However, later drastic changed were made in the proposed allocations of the APCC.
The forum has approved the GDP growth target of 3.6 percent for the upcoming fiscal year.
Meanwhile a press statement by the Prime Minister office stated that the NEC has approved in principle the 13th five-year National Development Plan along with the annual economic growth targets for the financial year 2024-25 and macroeconomic framework for annual planning.
The NEC meeting, presided over by Prime Minister Shehbaz Sharif, was informed that the key objectives of the plan included development of every part of the country, especially the less developed areas; increase in exports; promotion of the small and medium industry; social protection and poverty alleviation; increase in the capacity building of the work force; and a framework to protect from the impacts of climate change.
The NEC directed the Planning Ministry to ensure the positive role of the provinces in the national economy and to present a comprehensive framework to increase the exports.
The ministry was also directed to include the provinces in the consultation process to achieve the overall economic growth target of the country.
He further said that in all important decisions regarding the economy, the Federation would ensure consultation with the provinces and other stakeholders so that as a result of the collective vision for the development of the country, such decisions were made that were positive and involved the consent of all.
The prime minister also directed the National Economic Council to set up a committee which in consultation with the provinces and other stakeholders, should formulate the proposals to not only make the Council active but also to harmonize it with the modern requirements.
The meeting was informed about the performance and the annual development projects for the year 2023-24 and proposals for the upcoming fiscal year 2024-25.
It was told in the meeting that the growth rate target for the upcoming fiscal year had been increased significantly.
He directed to ensure inclusion of the provinces’ proposals regarding agriculture and other sectors in the plan.
The Council was also informed about the national goals for the recovery of the economy and the measures to achieve them.
The meeting was told that measures such as production of export products, innovation of agriculture sector, artificial intelligence and information technology sector in line with international standards, sustainable and renewable energy, effective use of water resources, development of youth and women, effective and speedy implementation of the second phase of China Pakistan Economic Corridor (CPEC) would ensure development of the country’s economy in next five years.
The review of the development budget 2023-24 and proposed development budget 2024-25 was also presented in the meeting.
It was told that in the upcoming development budget, priority would be given to the projects under CPEC, those of foreign investment and the ones close to completion.
Besides the targets of the Sustainable Development Goals (SDGs) would also be included in the development projects while the less developed areas of the country would be given priority in the development plan.
A report on the performance of Central Development Working Part (CDWP) and Executive Committee of National Economic Council (ECNEC) for the period April 2023 to May 2024 was also presented in the meeting.
Earlier, the participants of the meeting prayed to Allah Almighty to grant eternal peace to Captain Muhammad Faraz Ilyas Shaheed and other soldiers who were martyred in the terrorist attack in Lucky Marwat on Sunday.
Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers Khawaja Muhammad Asif, Muhammad Aurangzeb, Ahsan Iqbal and Ahad Khan Cheema, Punjab Chief Minister Marryam Nawaz Sharif, Sindh CM Syed Murad Ali Shah, Khyber Pakhtunkhwa CM Ali Amin Gandapur, Balochistan CM Sarfaraz Khan Bugti, Punjab Minister Marryum Aurangzeb, Sindh Minister Jan Khan Shoro, Advisor to the KP CM Muzamil Aslam, Balochistan Minister Zahoor Ahmed Buledi, State Bank of Pakistan Governor Jameel Ahmed and relevant high officers participated in the meeting.
Later, all chief ministers called on the prime minister and discussed matters related to upcoming budget.