The National Economic Council (NEC) of pakistan, headed by prime minister Shahbaz Sharif, has unanimously approved the National Development Budget of Rs 4,224 billion for the financial year 2025-26. The NEC has set a target of achieving a growth rate of 4.2 percent of Gross Domestic Product (GDP) for the upcoming financial year 2025-26.
According to the news released by 'Radio Pakistan' on wednesday (June 4, 2025), four provincial chief ministers of Punjab, Sindh, khyber pakhtunkhwa and balochistan participated in the NEC meeting held in Islamabad on Wednesday.
The meeting also announced a GDP growth rate of 2.7 percent in the current financial year ending on june 30. Pakistan follows a financial year from July 1 to june 30. Addressing the meeting, prime minister Sharif raised the issue of india suspending the Indus Water Treaty (IWT) and said that India's threats to deprive pakistan of water resources are unacceptable and we will defeat india on this front as well.
Shehbaz Sharif said that the agriculture sector plays an important role in increasing foreign exchange and growth rate, so strategies are being made to improve agricultural production.
Soon after the terrorist attack in Pahalgam, kashmir - SRINAGAR/JAMMU' target='_blank' title='jammu and kashmir-Latest Updates, Photos, Videos are a click away, CLICK NOW'>jammu and kashmir on april 22, India had announced the suspension of the Indus Water Treaty along with other punitive measures. The Indus Water Treaty was signed by the two countries in 1960 to resolve water disputes between them and share water from the six main rivers of the Indus basin.
Meanwhile, the NEC also approved the 13th Five-Year Development Plan and the Uran pakistan Blueprint, a major project to accelerate national economic growth. It was told in the meeting that remittances have increased by 30.9 percent from July 2024 to april 2025 and the current account balance has been positive for the first time.
Due to government policies, the policy rate has gradually decreased to 11 percent, while the loan given for private sector development increased to Rs 681 billion from July 2024 to May 2025.
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