Budget 2024-25: PM Shehbaz to review development programmes in NEC meeting
The 13th five-year plan — 2024-2029 — will also be presented for approval in NEC meeting
Prime Minister Shehbaz Sharif is set to lead a pivotal meeting of the National Economic Council (NEC) at the PM House today, where the development programme for the forthcoming financial year will be finalized, reports The News. The assembly will not only finalize the development agenda for the 2024-25 fiscal year but also review the progress of the current year’s development programme.
The meeting will convene the four provincial chief ministers along with representatives from the federation and provinces. One of the significant items on the agenda includes setting the economic targets for the upcoming financial year and presenting the 13th five-year plan (2024-2029) for approval.
Sources suggest the proposed economic growth target for the 2024-25 fiscal year is 3.6%, a slight uptick from the current year’s 3.5% goal. For inflation, the NEC is looking to bring down the average target to 12%, a substantial reduction from this fiscal year’s 21%.
The agricultural sector’s growth target is proposed to be lowered to 2% for the new financial year, compared to 3.5% set for the current year. Conversely, the industrial sector’s growth target is proposed to rise to 4.4%, up from this year’s 3.4%. The services sector growth target is set to increase to 4.1%, compared to the current year’s 3.6%. Additionally, the investment target for the next fiscal year is proposed at 14.2% of GDP, while the national savings target is slated to be 13.3%.
The federal government has also prepared a comprehensive five-year plan (2024-2029) to outline significant economic objectives. This plan incorporates a macroeconomic framework addressing areas such as energy, balance of payments, the development budget, food and agriculture, population, poverty, and governance reforms. The five-year plan is expected to be integrated into the next fiscal year’s budget.
The NEC will evaluate the proposed public investment for the upcoming year, reviewing both the federal development programme and the provincial annual development plans. It will also assess the development plans for state-owned enterprises and the progress reports from the Executive Committee of the National Economic Council (ECNEC) and the Central Development Working Party.
This meeting is poised to set the economic tone for the coming fiscal year, with a strong focus on sustainable development and strategic planning for national growth.