ISLAMABAD: The government is scheduling meetings of the Annual Plan Coordination Committee (APCC) and the National Economic Council (NEC) in the first week of June to clear a consolidated national development programme of more than Rs3.5 trillion and a macroeconomic framework envisaging an economic growth rate of 4.1 per cent with an elevated inflation rate of 8.5pc for the next fiscal year.

Informed sources said the APCC meeting, to be presided over by the planning and development minister, was being scheduled for June 1, to be followed by the NEC meeting, led by the prime minister, on June 3. The schedule hints that presentation of the federal budget to parliament may slip to the second week of June from the first week, as earlier contemplated by the authorities concerned.

The delay in the APCC and NEC meetings, earlier planned for May 20 and 22, is being attributed to the prime minister’s availability before Eidul Azha because of his other pressing engagements.

Schedules APCC, NEC meetings early next month

The two forums generally review economic and development performance during the outgoing fiscal year and set targets for the following year before these are incorporated into the federal and provincial budgets. Led by the prime minister, the NEC comprises the four chief ministers and as many federal ministers and serves as the highest forum for decision-making on development and macroeconomic coordination between the federation and federating units.

The sources said the finance ministry had given an indicative budget ceiling (IBC) of about Rs1.126tr for the federal Public Sector Development Programme (PSDP), although the prime minister had instructed officials to increase it to Rs1.5tr by also including separate schemes of some corporations. This is despite the IMF setting a Rs986bn PSDP target for next year.

It may be noted that the government typically announces larger development allocations every year for political reasons, but IMF estimates ultimately prevail by the close of the fiscal year as the tax machinery misses revenue targets and the axe naturally falls on the development budget. Even during the current year, the government announced a PSDP of over Rs1tr, which was subsequently cut to the IMF-estimated size of Rs837bn.

Officials said the Planning Com­mission had, as usual, sought a larger Rs2.9tr envelope for the PSDP based on sectoral demands amounting to about Rs4tr. However, the Ministry of Finance did not allow allocations beyond Rs1.126tr in view of IMF commitments.

The IMF has targeted the federal development programme for next year at Rs986bn, compared to its Rs873bn estimate for the current year, notwithstanding larger announcements made by the government in the budget. Provincial development budgets are estimated at Rs2.5tr next year, compared to Rs2.1tr in the current year.

Published in Dawn, May 20th, 2026