The National Economic Council (NEC) is Pakistan's supreme policymaking body for economic issues, established by the Constitution. The NEC consists of the Prime Minister, provincial chief ministers, and other members nominated by the Prime Minister. It is responsible for reviewing Pakistan's overall economic condition, advising on financial and economic policies, and ensuring balanced development. Major development projects must be approved by the Executive Committee of NEC. The NEC meets biannually to review economic policies and annual development plans and submit reports to Parliament.

1. NATIONAL ECONOMIC
COUNCIL (NEC)
By Tayyaba Sabir

2. INTRODUCTION
WHAT IS NATIONAL ECONOMIC COUNCIL?
The financial planning machinery of the country
as the supreme policy making body in the
economic sphere.

3. CONSTITUTION OF PAKISTAN ARTICLE 156(2)
• The National Economic Council shall review the overall economic
condition of the country
• For advising the Federal Government and the Provincial
Governments,
• Formulate plans in respect of financial, commercial, social and
economic policies;
• Ensure balanced development and regional equity and shall also be
guided by the Principles of Policy

4. EXECUTIVE COMMITTEE OF NATIONAL
ECONOMIC COUNCIL (ECNEC)
According to Article 156: National Economic Council
• The President shall constitute a NEC which shall consist of -
a. the Prime Minister, who shall be the Chairman of the Council;
b. the Chief Ministers and one member from each Province to be
nominated by the Chief Minister; and
c. four other members as the Prime Minister may nominate from
time to time.

5. FUNCTIONS
• Development Schemes costing more than Rs.500 million are
submitted to ECNEC for its consideration/approval
• To allow moderate changes in the plan and sectoral re-adjustments
within the over-all plan allocation.
• To supervise the implementation of the economic policies laid down
by the Cabinet and the National Economic Council.

6. NATIONAL ECONOMIC COUNCIL
RECONSTITUTED
On May 2011:
“President Asif Ali Zardari on the advice of the prime minister has reconstituted the
National Economic Council under Article 156(1) of the Constitution.”

7. MEETINGS
• organized by the Cabinet Division
• Prime Minister chair the meetings.
• Called on demand made by one-half of the members of the Council.
• The Federal and Provincial Ministers and officials of the Divisions
concerned.
• Meeting shall be at least twice in a year
• Strength for a meeting of the Council shall be one-half of its total
membership.

8. CONTINUE
• Submission of cases, provisions of rules 18 and 20 shall apply.
• Summary shall reach the Cabinet Division at least 21 clear days in
advance of the meeting.
• Cabinet Secretary issued Other instructions regarding submission of
cases.

9. WORKING AND DECISION MAKING
• The financial planning machinery of the country.
• Reviewing the overall economic position of the country
• Formulating plans in respect of financial, commercial and economic
policies
• NEC approves all public sector plans above a certain financial limit
• five-year plans
• annual development plans
• provincial development schemes
• all non-profit projects.

10. CONTINUE
• It may appoint committees or bodies of experts to assist it.
• The Council shall be responsible to the Majlis-e-Shoora (Parliament)
• Shall submit an Annual Report to each House of Majlis-e-Shoora
(Parliament).

11. MONITORING OF NEC/ECNEC:
Monitoring of development projects is necessary to check cost and time.
• Outcome are presented on a quarterly basis to ECNEC & Biannually
to NEC.
• Project Wing ensure implementation of all decisions and directives.
• On ECNEC decision, cell establish for each performing ministry for
monitoring.
• Linkages with District Monitoring Development Committees will be
ensured.

12. SUGGESTIONS FOR IMPROVEMENT
• Annual report should focus on the progress made on the implementation
• Should present an analytical picture of the impact of planning on balanced
development and regional equity.
• Must hire some expert to carry out the analyses.
• Rules of CCI apply to the NEC.
• The report must be presented within a quarter of the end of the Financial
Year.

13. QUESTION/ANSWER