The National Economic Council (NEC), Pakistan’s top constitutional body for economic planning, has seen its meeting postponed again, heightening uncertainty over the federal budget for the fiscal year 2026-27.
The rescheduled NEC session is now set for Wednesday, where it is anticipated that the council will approve the budget along with crucial development spending proposals prior to their submission to parliament. The federal budget, initially expected earlier this month and then planned for June 10, is now projected to be presented on June 12.
This latest postponement follows an earlier delay of the NEC meeting, chaired by Prime Minister Shehbaz Sharif, which was deferred amid ongoing discussions regarding the budget framework and development priorities for the upcoming fiscal year. The government continues to work on finalizing spending allocations and building consensus on significant economic measures ahead of the budget announcement.
The NEC plays a critical role in approving federal and provincial development programs before the annual budget is unveiled. In its upcoming session, the council is expected to review a combined federal and provincial development expenditure totaling Rs4.715 trillion for FY 2026-27.
Moreover, the NEC is likely to consider an increase of about Rs200 billion in the federal Public Sector Development Programme (PSDP), raising the allocation from Rs1.126 trillion to approximately Rs1.326 trillion. This adjustment underscores the government’s commitment to funding infrastructure and development projects despite ongoing fiscal challenges.
Deliberations over the budget date and development spending have been underway since early June. On June 2, it was indicated that the government was contemplating revising the budget presentation timeline as consultations on the fiscal plan and expenditure priorities continued.
The upcoming NEC meeting will include the chief ministers of all four provinces, provincial finance ministers, and the prime minister of Azad Jammu and Kashmir. Together, they will review and approve development allocations prior to the formal budget presentation.
