NEC approves Rs3.8tr for five-year development plan

The National Economic Council (NEC) has approved a five-year National Development plan alongside annual growth targets for the financial year 2024-25 and the annual plan for a macroeconomic framework.

The plans were approved in a meeting of NEC presided by Premier Shehbaz Sharif, held on Monday. 

It was decided that funding to constituency-based schemes and ongoing provincial projects would continue for five years.

The council approved the national development plans worth Rs3.792 trillion for the next fiscal year to boost the growth rate to 3.6 percent from the current 2.4 percent. 

According to the officials, the approved project will be built under the tight scrutiny of the International Monetary Fund (IMF), as the authorities have been talking to the global loan lander for a $6-8 bailout for over three years. 

A four-hour-long meeting approved over a 47 percent increase in the federal Public Sector Development Programme (PSDP) to Rs1.4trillion compared to Rs950 billion in the current year. 

It would go up by 58 percent or Rs1.5 trillion if another Rs100 billion project of the public-private partnership were added to the federal development programme,

However, the state-owned entities would invest Rs197 billion, leading the total size of investment to Rs4.696 trillion.

The NEC approved development projects for all four provinces worth Rs2.095 trillion and agreed to continue funding for the ongoing high-priority provincial projects with over 80 percent completion status.

The development came after Sindh Chief Minister Murad Ali Shah pointed out that the province suffered in Imran Khan-led PTI government tenure due to the no provision of funds. 

He had demanded Sindh should be compensated for the injustices of four years.