The meetings of the Annual Plan Coordination Committee (APCC) and the National Economic Council (NEC), initially scheduled for May 20 and 22 respectively to finalize the development outlay and investment plans for FY2026-27, have been postponed to the first week of June. Official sources informed The Nation that the APCC meeting is now likely to be held on June 1, 2026, while the NEC meeting is expected to take place on June 3.
Finance Division Sets Lower Budget Ceiling
The Finance Division has set a Rs1.126 trillion indicative budget ceiling (IBC) for development projects, rejecting the planning ministry’s request of Rs2.9 trillion for the upcoming Federal Public Sector Development Programme (PSDP). The planning ministry had sought an allocation of Rs2.9 trillion in PSDP FY 2026-27, but the finance division declined and allocated less than half of the demanded funds.
Demands Exceed Available Funds
Various ministries and divisions have submitted demands totaling Rs4 trillion for allocations in the federal PSDP FY 2026-27, covering both ongoing and new projects. However, the Ministry of Planning requested Rs2.9 trillion from the finance ministry solely for ongoing projects. The Finance Division provided an IBC of Rs1.126 trillion, which will not even fully cover the requirements of ongoing projects, according to sources. Consequently, there is very little room for adding new projects to the Federal PSDP during the next fiscal year.
APCC Role and Meeting Agenda
The APCC is a consultative body that provides recommendations on macroeconomic and development frameworks to the National Economic Council. Minister for Planning, Development and Special Initiative Ahsan Iqbal, who is also Deputy Chairman of the Planning Commission, will preside over the APCC meeting. The meeting will review the development portfolio for the ongoing fiscal year 2025-27 and approve the overall indicative development budget for the Federal PSDP and provincial Annual Development Plans (ADP) for FY 2026-27.
NEC Meeting Agenda
The NEC, chaired by the Prime Minister, will review the national investment plan for 2025-26 and finalize the national investment plan for 2026-27. It will also review provisional GDP growth figures for the outgoing fiscal year FY 2025-26 and finalize figures for the previous fiscal year (FY24-25). Additionally, the NEC will examine performance reports of the Executive Committee of the National Economic Council (ECNEC) and the Central Development Working Party (CDWP) for the ongoing fiscal year 2025-26.
