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NEC Approves Rs. 1.5 Trillion Development Budget

 

The recent NEC meeting, headed by Chief Minister Shahbaz Sharif, approved a development budget worth Rs1.5 trillion. This includes Rs1.4 trillion from the federal government and an additional Rs100 billion through public-private partnerships to stimulate growth all over Pakistan.

Review of FY2023 and NEC approval for FY2024

During the NEC session, the team comprehensively reviewed the Annual Plan FY2023. It involved detailed discussions on long-term projects spanning over fifteen years. After extensive deliberations, the council approved the budget for FY2024 in line with national development goals.

Economic Growth Targets and Five-Year Plan (FYP) NEC 

According to official documents, next year’s projected economic growth is 3.6%, while the five-year average growth trajectory should not exceed 5.1%. Under an ambitious five-year plan, the country aims to attain a sustainable growth rate of 6% by FY2029, also emphasizing the agriculture sector. Two percent growth in this sector during FY2022-23 alone is projected, given that agricultural modernization. And productivity enhancement remain critical foundations for Pakistan’s economy.

Sectoral Targets

Within sectoral development strategies. The industrial sector is targeted for a four-point-four percent growth rate. Whereas the services sector should grow by four-point one percent during the coming fiscal year. The approval of the $40.5 billion revenue target shows efforts being made to boost economic productivity while expanding revenue streams.

Revenue & Remittance Targets

NEC anticipates higher economic performance; thus, a $68.1 billion inflow is projected as revenues for the next financial year. Foreign exchange inflows are expected to bring about stability; hence, remittances from overseas Pakistanis have been set at $30.2 billion. Which will significantly bolster the current account position and support the overall balance between different accounts.

Current Account Deficit Target

The council recognized the need to address fiscal concerns; hence, the current account deficit should not exceed 3.7% of GDP for the next fiscal year. Proactive steps towards managing economic imbalances can always be taken by keeping reserves at adequate levels. Enhancing financial resilience within the system even when faced with shocks.

Public Investment & Development Initiatives

Moreover, public investments are important drivers of economic development, focusing on critical infrastructures and other strategic projects. The session also saw review reports, such as those related to financial indicators, while affirming a collaborative approach among provinces through CDWP meetings to advance national development agendas.

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