Balancing Centralization And Decentralization: The Mediating Role of the National Economic Council in Pakistan’s Economic Governance

Abstract

This study focuses at how the National Economic Commission (NEC) handles the intricate relationship between province autonomy and centralized economic planning in Pakistan's federal structure following the 18th Amendment. The research used a qualitative methodology to examine constitutional provisions, NEC policy documents, and illustrative case studies, including intergovernmental coordination during natural catastrophes and the National Finance Commission (NFC) Awards. The results show that although the NEC is constitutionally positioned to advance cooperative federalism, political fragmentation, conflicting institutional mandates, and a lack of technical expertise restrict its efficacy. However, it continues to be an essential platform for intergovernmental economic discourse. In order for the NEC to carry out its mediating function in Pakistan's changing economic governance framework, the paper makes the case that specific institutional reforms—such as binding arbitration procedures and capacity building—are necessary.