The National Economic Council (NEC) has greenlit a substantial increase in the national development budget for the fiscal year 2024-25, totaling Rs3.5 trillion. This marks a 24% surge from the allocations of the outgoing fiscal year, showcasing a proactive stance towards economic growth and development.
The approval, buoyed by support from all four provinces, signals a step forward in federal fiscalism and consensus-building on critical economic matters. Prime Minister Shehbaz Sharif’s initiative to establish a committee, led by Economic Affairs Minister Ahad Cheema, underscores a commitment to inclusivity in decision-making processes.
Despite earlier discontinuations, the NEC reinstated the budget for parliamentarians’ schemes, allocating Rs75 billion for the upcoming fiscal year. Additionally, increased financial provisions for provincial projects within the federal budget further emphasize a collaborative approach towards national development.
Under Prime Minister Shehbaz Sharif’s leadership, the NEC endorsed ambitious economic targets, including a 3.6% growth rate and a 12% inflation target for the next fiscal year. A five-year macroeconomic plan, aimed at boosting exports to $63 billion by 2029, underscores a strategic vision for sustained economic progress.
While some members expressed concerns regarding projected negative growth in key crops, the approval of the annual plan, with a caveat for review, highlights a balance between cautious optimism and prudent decision-making.
Of the total budget outlay, Rs932 billion, or 27%, will be funded through foreign loans, reflecting a reliance on external financing to support developmental initiatives. The federal Public Sector Development Programme (PSDP) received a significant boost, with a Rs1.4 trillion allocation, representing a 47% increase from the previous fiscal year.
Provincial annual development plans, totaling Rs2.1 trillion, received a 12% increase, with the provinces expected to finance Rs616 billion through foreign loans for their respective schemes. Notably, Punjab’s development budget is poised to increase, reflecting a commitment to regional growth and infrastructure development.
Key sectors such as water resources, transportation, and education witnessed substantial budgetary allocations, indicative of a holistic approach towards addressing developmental challenges. The Ministry of Railways, Suparco, and Information Technology received notable budget enhancements, underlining a focus on modernization and technological advancement.
The approval of the five-year economic framework, coupled with ambitious growth targets, sets the stage for a concerted effort towards economic revitalization and resilience. With a clear roadmap in place, Pakistan aims to navigate through challenges and capitalize on opportunities for sustainable development and prosperity.
