Prime Minister Shehbaz Sharif has removed Finance Minister Muhammad Aurangzeb from the chairmanship of the Executive Committee of the National Economic Council (ECNEC), a pivotal body for economic decision-making. The Prime Minister has assumed the role himself, following attempts to appoint Deputy Prime Minister and Foreign Minister Ishaq Dar as the head of the committee. Although Dar has been included as a member of ECNEC, he expressed no interest in chairing it.
The Cabinet Division has notified the new composition of ECNEC, which is tasked with making critical economic and development decisions. Under the new arrangement, Prime Minister Sharif will chair ECNEC, with Ishaq Dar, Muhammad Aurangzeb, and Planning Minister Ahsan Iqbal as its members.
To accommodate the inclusion of the Prime Minister and the Foreign Minister, the ministers for communication and commerce have been excluded from the committee. ECNEC comprises eight members: four from the central government and one from each of the four provinces.
This marks the second time Aurangzeb has been sidelined from chairing a significant economic body. Previously, Prime Minister Sharif had appointed Dar as the chairman of the Cabinet Committee on Privatisation. Despite Dar’s advisory role on economic matters, he has opted not to lead ECNEC and was absent from a crucial budget briefing to military authorities.
Planning Minister Ahsan Iqbal noted that it is not unprecedented for the Prime Minister to chair ECNEC meetings, citing Shahid Khaqan Abbasi’s tenure as an example. The Cabinet Division has also announced the four provincial members of ECNEC: Marriyum Aurangzeb, Senior Minister for Planning from Punjab; Jam Khan Shoro from Sindh; Muzammil Aslam, Adviser to the Chief Minister from Khyber-Pakhtunkhwa; and Shoaib Nosherwani, Finance Minister from Balochistan.
ECNEC is mandated to approve mega development projects worth Rs10 billion or more. In its upcoming meeting, ECNEC is expected to discuss major projects including the $6.7 billion Mainline-I railway project and the $2 billion Karakoram Highway project, alongside other significant schemes awaiting approval.
Sources indicate that the finance ministry initially resisted allocating more than Rs1 trillion for federal development spending in the next fiscal year. However, after Prime Ministerial intervention, the budget was increased to Rs1.5 trillion before being adjusted to Rs1.4 trillion. This additional Rs400 billion necessitated further taxation measures, resulting in politically contentious decisions such as increased tax burdens on the salaried class, an 18% tax on milk sales, higher taxes on cement, and excise duties on homes, plots, and plazas.
Although the Finance Minister remains a member of ECNEC, he will not have the final say on matters with significant budgetary implications. ECNEC serves as a crucial check on the Planning Commission, which has faced criticism for approving mega projects without sufficient due diligence.
The government has earmarked 19% of the next fiscal year’s development budget for new development schemes, underscoring its commitment to advancing Pakistan’s infrastructure and economic growth.