NATIONAL ECONOMIC COUNCIL (NEC)

By Tayyaba Sabir

INTRODUCTION

WHAT IS NATIONAL ECONOMIC COUNCIL?

The financial planning machinery of the country

as the supreme policy making body in the

economic sphere.

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

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.

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.

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.”

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.

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.

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.

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).

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.

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.

QUESTION/ANSWER