BUDGET 2026-27: Political, fiscal reality to reshape uplift budget as NEC meets today

Pakistan's highest economic decision-making body, the National Economic Council (NEC), is set to convene today, potentially reshaping federal and provincial development plans totaling Rs4.715 trillion for the upcoming fiscal year. The revisions are driven by competing fiscal demands from critical political and institutional stakeholders.

The NEC, chaired by the prime minister and including all four chief ministers and federal ministers, will review the Annual Plan 2025-26 and approve the Annual Plan 2026-27. A key agenda item includes a presentation on the socio-economic indicators of the provinces, followed by a review of Public Sector Investment for 2025-26 and the proposed investment for 2026-27.

Significant challenges loom, particularly for mega projects, which are reportedly facing substantial cost and time overruns. These overruns could necessitate major adjustments to their budgets and timelines, impacting the overall development landscape. The federal Public Sector Development Programme (PSDP) might see an increase above Rs1.3 trillion, while provincial Annual Development Programmes (ADPs) could face trimming.