NEC and ECNEC

National Economic Council (NEC)

• Constituted by the President under Article 156.
• Members: the Prime Minister (chairman), the four chief ministers, one member from each province nominated by its chief minister, and four other members nominated by the Prime Minister.
• Functions: reviews the overall economic condition of the country; advises the federal and provincial governments; formulates plans on financial, commercial, social and economic policies.
• Approves the national annual plan and the size of the federal and provincial development programmes.
• In formulating plans, it must ensure balanced development and regional equity, guided by the Principles of Policy.
• The 18th Amendment requires it to meet at least twice a year and to submit an annual report to Parliament.

Executive Committee of the NEC (ECNEC)

• Chaired by the Prime Minister under the rules; in practice the Finance Minister or Deputy Prime Minister often presides.
• Members include federal ministers concerned and representatives of the provinces, usually the chairmen of provincial planning boards or ministers.
• Approves development projects above the approval limit of the Central Development Working Party (CDWP).
• Approves revisions in project costs beyond permitted limits.
• Monitors the progress of major development projects.

The project approval hierarchy

• Departmental Development Working Party (DDWP): approves smaller projects within a ministry.
• Central Development Working Party (CDWP): chaired by the Deputy Chairman of the Planning Commission; approves medium projects and recommends larger ones to ECNEC.
• ECNEC: approves the largest projects.
• Provinces have parallel bodies: the Provincial Development Working Party (PDWP).

Issues

• Infrequent NEC meetings in some years.
• Projects approved without adequate feasibility studies or funding, leading to a large portfolio of unfinished schemes.
• Political considerations in project selection.
• Cost overruns and delays.

Conclusion

NEC and ECNEC are the apex bodies for economic planning and project approval. Making them more evidence-based and disciplined would greatly improve the quality of public investment.