In Pakistan, the policy rate has gradually decreased to 11 per cent due to government policies, while loans given for private sector development increased to Rs 681 billion from July 2024 to May 2025
Pakistan Prime Minister Shehbaz Sharif. File Pic
Pakistan's National Economic Council (NEC), chaired by Prime Minister Shehbaz Sharif, has approved the Rs 4,224 billion national development budget along with a 4.2 per cent gross domestic product (GDP) growth target for the financial year (FY) 2025–26.
The NEC meeting, attended by the four provincial chief ministers of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan on Wednesday in Islamabad, also announced a GDP growth of 2.7 per cent for the current fiscal year ending on 30 June, reported Radio Pakistan on Wednesday.
According to PTI, addressing the meeting, PM Sharif raised the issue of the abeyance of the Indus Water Treaty (IWT) by India, saying, "New Delhi's threats to deprive Pakistan of water resources are unacceptable, and we will defeat India on this front also."
However, PM Sharif further stated that the agricultural sector plays a crucial role in increasing foreign exchange and the growth rate; therefore, a strategy is being formulated to improve agricultural production.
Soon after the 22 April terrorist attack in Pahalgam, India announced the abeyance of the IWT among other punitive measures. However, it's worth noting that the IWT was signed in 1960 by the two countries to address the water dispute between the two nations (India and Pakistan) to share the waters of the six main rivers of the Indus basin.
Meanwhile, the NEC also approved the 13th five-year development plan and the Uraan Pakistan Framework, a key project to fast-track national economic growth, reported the PTI news agency.
The forum also approved the macroeconomic framework and targets for the next fiscal year.
However, the council directed relevant ministries, provinces, and government institutions to collaborate with the Ministry of Planning to achieve the targets set in the proposed annual plan for 2025–26.
In the meantime, these development projects will prioritise health, education, infrastructure, the water sector, and housing in the country.
The meeting was told that remittances increased by 30.9 per cent from July 2024 to April 2025, and the current account balance remained positive for the first time, reported PTI.
It's worth noting that, in Pakistan, the policy rate has gradually decreased to 11 per cent due to government policies, while loans given for private sector development increased to Rs 681 billion from July 2024 to May 2025.
(With inputs from PTI)
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