ISLAMABAD: Led by Prime Minister Shehbaz Sharif, the National Economic Council (NEC) has commenced at PM House with key political and economic leaders in attendance on Wednesday.

The upcoming meeting of the NEC will review the distribution of development funds between the federal and provincial governments, along with economic targets and the proposed development programme for the next fiscal year.

According to official sources, the NEC is expected to approve key economic priorities and the development budget for FY2026–27, including the overall national development framework.

The proposed total national development outlay for the next fiscal year has been set at Rs4,715 billion. This includes Rs1,126 billion for the federal Public Sector Development Programme (PSDP) and Rs3,138 billion allocated for provincial development projects.

Sources said there is also a possibility of a Rs200 billion increase in the federal PSDP, which would be reviewed as part of ongoing discussions between the centre and provinces ahead of final approval.

The council’s deliberations are expected to focus on balancing fiscal constraints with infrastructure needs, as well as aligning federal and provincial development priorities before the budget is formally presented.

Among those who reached the venue were Khyber Pakhtunkhwa Chief Minister Sohail Afridi and Sindh Chief Minister Murad Ali Shah, both expected to participate in discussions on national economic planning and development priorities.

Federal Minister Rana Sanaullah also arrived at the Prime Minister’s House, along with Finance Secretary Imdadullah Bosal, as preparations for the high-level meeting got underway.

The NEC meeting is expected to review macroeconomic indicators, provincial development priorities, and fiscal coordination between the federation and the provinces.

Officials said the gathering will also focus on aligning economic targets and reviewing ongoing development projects across the country.