The National Economic Council (NEC) led by Prime Minister Shehbaz Sharif has given its nod to a comprehensive development plan with a budget allocation of Rs2.79 trillion for the fiscal year 2023-24. The council has also directed the provinces to implement energy-saving measures, including the close down shops and commercial activities by 8 pm, the replacement of traditional bulbs with energy-efficient LED lights, and the installation of efficient geysers. This energy conservation plan aims to save a staggering $1 billion. Let’s delve deeper into the key decisions made during the NEC meeting.
Provinces Instructed to Implement Energy Conservation Measures
The NEC has taken a significant step towards energy conservation by directing the provinces to close down shops and commercial activities by 8 pm. This measure, along with the replacement of traditional bulbs with LED lights and the installation of efficient geysers, is expected to contribute significantly to energy savings. By adopting these practices, the country aims to save an estimated $1 billion, which can be utilized for other developmental purposes.
Approval of National Development Outlay for Budget 2023-24
During the NEC meeting, the national development outlay for the upcoming budget was approved, amounting to Rs2.79 trillion. This allocation is crucial for driving the economic growth and progress of the country.
The federal share of the Public Sector Development Programme (PSDP) stands at Rs1.15 trillion, while the provinces’ annual development outlay is set at Rs1.64 trillion. These funds will be utilized for various development projects and initiatives across the nation.
Optimistic Outlook for Development Budget
Minister for Planning, Ahsan Iqbal, expressed optimism regarding the national development outlay, stating that it might surpass the Rs3 trillion mark. This positive projection is due to the presentation of four-month interim budgets by the governments of Punjab and Khyber Pakhtunkhwa.
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The minister emphasized that the development budget was planned in the best interests of the country and aimed to align with fiscal requirements. He further stated that the International Monetary Fund (IMF) should have no objections to this budget.
Sustainable Development Goals Achievement Programme
The NEC has allocated Rs90 billion for the Sustainable Development Goals Achievement Programme, specifically catering to parliamentarians, in the next budget. This allocation aims to ensure the successful attainment of sustainable development goals outlined by the United Nations.
The allocated funds will support projects and initiatives designed to address social, economic, and environmental challenges, ultimately leading to the overall development and progress of the nation.
Approval of Macroeconomic Framework
The NEC has granted approval for the macroeconomic framework, which includes a GDP growth target of 3.5 percent and an inflation rate of 21 percent for the budget year 2023-24. These targets are set to ensure stable economic growth and mitigate inflationary pressures. The approval of the macroeconomic framework reflects the government’s commitment to achieving sustainable economic progress.
Launching the 5Es Framework and 2035 Outlook
The NEC’s approval of the 5Es Framework and 2035 Outlook marks a defining moment for the country. The framework encompasses five key elements: economy, education, environment, energy, and equity. It presents the nation with a crucial decision to either maintain the status quo or strive for a $1 trillion economy and reduce poverty to 15 percent by 2035. Minister Ahsan Iqbal emphasized that achieving a growth rate of six to eight percent annually would be instrumental in ensuring political stability.
Economic Challenges and Stabilization Efforts
Minister Ahsan Iqbal acknowledged the challenges faced by the economy due to the previous government’s policies, which resulted in an increased import bill and a trade deficit. These factors put pressure on the Pakistani rupee against the US dollar and depleted foreign exchange reserves.
However, through dedicated efforts, the current government has been able to stabilize the economy. The approval of the 5Es Framework aims to address these challenges and boost exports from $30 billion to $100 billion.
Promoting Digital Transformation and IT Sector
Prime Minister Shehbaz Sharif chaired a high-level meeting on the promotion of the Information Technology (IT) sector. Mega incentives for the IT sector have been proposed in the upcoming fiscal budget to enhance IT exports and boost the country’s technological advancement.
The government aims to create a favorable environment for business and trade through modern technology. Special concessions and incentives for new start-ups and entrepreneurship will be introduced, providing job opportunities for the youth and driving economic growth.