PM Shehbaz NEC meeting sets stage for 2026-27 budget

Prime Minister Shehbaz Sharif addressed a meeting of the National Economic Council (NEC) on Wednesday, said the federal government and provinces worked together to make economic decisions in Pakistan. He made these remarks while.

The meeting was held to finalize federal and provincial development plans before the presentation of the 2026-27 budget. The NEC is Pakistan highest economic decision making body and includes the Prime Minister, four Chief Ministers, and Federal Ministers.

Prime Minister Shehbaz Sharif thanked all Chief Ministers for their cooperation and support. He mentioned that Punjab Chief Minister Maryam Nawaz could not attend because she was recovering from a recent medical procedure. PM Shehbaz said the Centre held serious consultations with the provinces before making important decisions.

He noted that Pakistan economy is now stable at the macroeconomic level. However, he stressed that economic growth remains the next major goal. He said increasing employment, production, exports, and business activity is a shared responsibility. According to him, all governments worked hard to stay committed to the IMF program despite facing difficult challenges.

PM Shehbaz also revealed that he recently spoke with IMF Managing Director Kristalina Georgieva. He said she appreciated Pakistan sincere efforts in implementing the IMF program. The prime minister added that the center had been discussing ways with the provinces to increase resources and strengthen economic development.

Speaking about security, PM Shehbaz said strengthening national defence is the country biggest challenge. He highlighted the sacrifices made by people in Khyber Pakhtunkhwa and Balochistan, as well as law enforcement agencies and the armed forces, in the fight against terrorism. He said terrorism can only be defeated through a united national effort.

The prime minister also emphasized the need to support exports and manufacturing. He said these sectors are important for increasing Pakistan GDP growth. According to him, ordinary citizens are more concerned about jobs, agriculture, industry, and export growth than economic indicators.

PM Shehbaz referred to the recent rise in global oil prices, which forced the government to increase petroleum prices. He said cooperation between the federal and provincial governments helped the country manage the situation. He added that the federal government had already spent Rs128 billion from its limited resources before receiving provincial support.

The prime minister said Pakistan avoided fuel shortages and long queues at petrol stations during the recent Middle East conflict. He credited this success to strong coordination between the centre and the provinces. He said teamwork helped meet public needs during a difficult period.

At the end of his speech, PM Shehbaz thanked Maryam Nawaz, Nawaz Sharif, President Asif Ali Zardari, Bilawal Bhutto Zardari, Sindh Chief Minister Murad Ali Shah, KP Chief Minister Sohail Afridi, and Balochistan Chief Minister Sarfaraz Bugti. He said close cooperation between the federal and provincial governments made progress possible and would remain important in the future.

During the meeting, the NEC reviewed federal and provincial development plans worth Rs4.715 trillion for the next fiscal year. The government also called sessions of the National Assembly and Senate on Wednesday evening. These meetings were budget sessions for 2026-27, while the federal budget is expected to be presented on June 12.

According to the proposed breakup, Rs. 1.126 trillion will be allocated for the federal Public Sector Development Programme (PSDP), Rs. 3.138 trillion for provincial development programs, and around Rs. 450 billion for federal state owned enterprises.

The NEC agenda included a review of the Annual Plan 2025-26 and approval of the Annual Plan 2026-27. Members also discussed key socio-economic indicators of the provinces.

The meeting reviewed Public Sector Investment plans and considered changes made to the Public Sector Development Program (PSDP), including a reduction of around Rs175 billion.

The four provincial chief secretaries were also scheduled to present their annual development plans. In addition, the NEC reviewed a progress report of the Central Development Working Party (CDWP) covering the period from April 1, 2025, to March 31, 2026.

The council also examined projects approved by the CDWP and the Executive Committee of the National Economic Council (Ecnec) during that period.

The NEC meeting was originally planned for June 8 but was postponed for the third time. The delay was linked to ongoing discussions over provincial shares in the federal divisible pool under the National Finance Commission (NFC) Award.