BUDGET 2026-27: NEC trims uplift plans; Punjab takes biggest hit

Of the Rs1.046tr total cut, the combined annual development plans (ADPs) of the four provinces were slashed by almost one-third (29.3pc) to Rs2.218tr — roughly their actual utilisation so far in the current fiscal year — compared to the Rs3.138tr provincial portfolio finalised by the APCC on June 1. Punjab’s development plan was chopped by almost half, or 49pc, the biggest cut among all stakeholders, while Balochistan remained unaffected and actually secured more. The development freeze was agreed upon by the major coalition partners — the PPP and PML-N — before the NEC and budget dates were finalised. To provide political face-saving to provincial governments, the federal government also agreed to bring down its Public Sector Development Programme (PSDP) by Rs126bn, or 11pc, to Rs1tr from Rs1.126tr recommended by the APCC, Planning Minister Ahsan Iqbal told reporters after the NEC meeting. The meeting was presided over by Prime Minister Shehbaz Sharif and attended by three provincial chief ministers. Punjab Chief Minister Maryam Nawaz could not attend because of her recent surgery. The minister said provincial governments had argued that it would be difficult for them to defend ADP cuts if the Centre’s PSDP remained intact. Mr Iqbal said the Punjab chief minister had authorised the downward revision that restricted Punjab’s