The National Economic Council is set to approve a Public Sector Development Programme worth Rs1.5 trillion for FY 2026-27, with key sectors like railways and power receiving special attention.
The National Economic Council (NEC) is poised to approve a Public Sector Development Programme (PSDP) valued at approximately Rs1.5 trillion for the upcoming fiscal year during its scheduled meeting on June 3. The meeting will be chaired by Prime Minister Shehbaz Sharif, who is expected to finalize the annual development plan alongside other key recommendations.
Before the NEC session, the Annual Plan Coordination Committee (APCC) has been working diligently to finalise recommendations after thorough consultations with provincial governments. These provinces have submitted funding demands based on their respective priorities. Initially, the Ministry of Finance had proposed a PSDP ceiling of Rs1,126 billion for fiscal year 2026-27. However, due to increased demands from both federal and provincial development projects, this figure has now risen significantly to around Rs1.5 trillion.
Despite the substantial increase in funding requests, the amount still falls short of the Rs2.9 trillion sought by the Ministry of Planning. Approximately Rs70 billion is likely to be allocated for parliamentarians' Sustainable Development Goals (SDGs) schemes. Prime Minister Shehbaz has directed that development funds be allocated based on performance, with a particular emphasis on sectors demonstrating strong results.
In this context, key areas such as railways, information technology (IT), and power are expected to receive special attention to accelerate reforms and development initiatives. The government is focusing on the timely completion of ongoing schemes rather than launching new ones. Major water reservoirs and hydropower projects, including Dasu, Diamer-Bhasha, and Mohmand dams, remain top priorities. These projects are crucial for the country's energy security and will likely receive significant allocations in the upcoming budget.
Overall, the approval of this substantial PSDP is expected to provide a much-needed boost to various development sectors, with a clear focus on performance-based funding and timely project completion.
