ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday lauded the cooperation of all provincial chief ministers during the federal budget-making process, stating that every major decision was taken in the larger national interest to strengthen Pakistan’s economy and ensure sustainable development.
Addressing a meeting of the National Economic Council (NEC), the prime minister emphasized that Pakistan had successfully achieved macroeconomic stability and must now focus on accelerating economic growth, creating jobs, and improving living standards for ordinary citizens.
Provinces Played Key Role in Budget Planning
PM Shehbaz said the federal government maintained close consultations with provincial governments throughout the budget preparation process.
He appreciated the support shown by the chief ministers in managing financial resources during challenging economic conditions and acknowledged their constructive role in policy formulation.
“The federal government worked with complete sincerity and remained in continuous consultation with the provinces on all important matters,” he said.
The prime minister stressed that future economic progress would require continued collaboration between the federation and the provinces.
Focus Shifts from Stability to Growth
The premier noted that while Pakistan had stabilized key economic indicators, the country must now enter the next phase of economic expansion.
“Moving forward, economic activity and development are a joint responsibility of the federation and the provinces,” he stated.
He highlighted the need to stimulate investment, expand industrial production, increase exports, and strengthen the agricultural sector to generate employment opportunities and improve household incomes.
According to the prime minister, economic growth remains essential for addressing public concerns regarding jobs, inflation, and access to essential services.
IMF Programme and Economic Challenges
Shehbaz Sharif said Pakistan had successfully navigated multiple economic challenges while remaining within the International Monetary Fund (IMF) programme.
Referring to recent geopolitical tensions and rising global oil prices, he acknowledged that external developments had created additional pressure on the economy.
However, he praised the coordinated response between federal and provincial governments, which helped maintain stability and prevent disruptions in fuel supplies across the country.
“Due to well-planned policies and close coordination, there was no panic at petrol pumps,” he remarked.
Tribute to Armed Forces and Law Enforcement
Discussing national security, the prime minister paid tribute to the armed forces and law enforcement agencies for their sacrifices in the fight against terrorism.
“Our officers and personnel are making immense sacrifices against terrorism,” he said.
He expressed confidence that Pakistan would successfully eliminate terrorism through collective national efforts and continued security operations.
NEC Reviews Rs1 Trillion Development Programme
During the meeting, the NEC reviewed the proposed Public Sector Development Programme (PSDP) worth Rs1 trillion for the upcoming fiscal year.
Planning Minister Ahsan Iqbal informed participants that no new development projects would be included in the PSDP except those related to the Ministries of Defence and Interior.
He added that provincial governments would also adjust their development programmes to create additional fiscal space.
Officials indicated that the PSDP could potentially increase to Rs1.4 trillion if provinces agree to transfer additional resources to the federal government.
Strategic Projects Remain Priority
The federal government plans to allocate significant resources for major infrastructure and water projects considered strategically important for Pakistan’s future development.
These include:
- Diamer-Bhasha Dam
- Mohmand Dam
- Dasu Hydropower Project
Officials said approximately Rs335 billion has been proposed for critical water sector initiatives aimed at improving energy security and water management.
Defence Spending Under Review
The meeting also discussed defence allocations amid ongoing regional security challenges.
According to government officials, the IMF has projected defence spending of Rs2.665 trillion for the next fiscal year.
However, the government is reportedly considering allocations approaching Rs3 trillion due to heightened security concerns along both eastern and western borders.
Looking Ahead
The NEC meeting comes ahead of the federal budget presentation, expected later this week.
The prime minister reiterated that Pakistan must continue implementing reforms, strengthening cooperation between institutions, and focusing on economic growth to achieve long-term prosperity.
He also revealed that he had recently held discussions with the IMF Managing Director, who appreciated Pakistan’s efforts toward economic stabilization and expressed support for the country’s ongoing reform agenda.
“We must move forward with greater speed and determination to achieve sustainable growth and prosperity,” the prime minister concluded.
