NEC set to approve Rs1.5tr PSDP

The National Economic Council (NEC) is expected to approve a Public Sector Development Programme (PSDP) worth approximately Rs1.5 trillion for the upcoming fiscal year during its meeting scheduled for June 3.

The meeting, likely to be chaired by PM Shehbaz Sharif, will also approve the annual development plan.

Prior to the NEC session, the Annual Plan Coordination Committee (APCC) is expected to finalise recommendations after consultations with provinces, which have submitted funding demands based on their respective priorities.

Sources revealed that the Ministry of Finance had initially proposed a PSDP ceiling of Rs1,126 billion for fiscal year 2026–27. However, due to increased demands from federal and provincial development projects, the proposed size has now risen to around Rs1.5 trillion.

Despite this increase, the amount remains significantly lower than the Rs2.9 trillion requested by the Ministry of Planning. Approximately Rs70 billion is likely to be allocated for parliamentarians' Sustainable Development Goals (SDGs) schemes.

PM Shehbaz has reportedly directed that development funds be allocated based on performance, prioritizing sectors demonstrating strong results. In this regard, the railways, IT, and power divisions are expected to receive special attention to accelerate reforms and development initiatives.

Sources said ministries and divisions have sought over Rs4 trillion for around 286 ongoing and new projects. However, the government is focusing on timely completion of ongoing schemes rather than launching new ones.

Major water reservoirs and hydropower projects, including Dasu, Diamer-Bhasha, and Mohmand dams, remain top priorities, with significant allocations expected in the upcoming budget due to their importance.