Key Points
- Transport and communication sector gets Rs 408.9 billion, the single largest share within infrastructure
- Water sector allocated Rs 140.4 billion, followed by energy at Rs 135.6 billion
- Social sector, including education and health, to get 16.6 per cent of Rs 1.126 trillion
ISLAMABAD: Pakistan’s federal government has proposed allocating 65 per cent of its Rs 1.126 trillion Public Sector Development Programme (PSDP) for fiscal year 2026-27 to infrastructure projects.
The federal development budget for the upcoming financial year is capped at Rs 1.126 trillion under the Indicative Budget Ceiling, since it also depends on the foreign development funding inflows.
According to official documents, the infrastructure sector dominates the proposed outlay, with Rs 729.9 billion earmarked for key projects.
Within this, transport and communication accounts for Rs 408.9 billion, or 36 per cent of total PSDP resources, followed by water resources at Rs 140.4 billion, energy at Rs 135.6 billion, and physical planning and housing at Rs 45 billion.
The social sector has been allocated Rs 187.2 billion, representing 16.6 per cent of the total.
This includes Rs 78.5 billion for education and the Higher Education Commission, Rs 24.3 billion for health and nutrition, Rs 70 billion for the Sustainable Development Goals (SDGs) Achievement Programme, and Rs 14.4 billion for other social interventions.
Governance has been allocated Rs 10.2 billion, while the science and information technology sector is set to receive Rs 43.9 billion, accounting for 5.9 per cent of total development spending.
For regional development, Rs 79.4 billion has been proposed for Azad Jammu and Kashmir and Gilgit-Baltistan, and Rs 66.1 billion for the merged districts of Khyber Pakhtunkhwa, together forming 4.8 per cent of the PSDP.
The production sector has been allocated Rs 9.3 billion, including Rs 3.7 billion for agriculture and food and Rs 5.6 billion for industries, reflecting a 0.8 per cent share of the total outlay.
Documents show that ministries and divisions had collectively demanded around Rs 4.1 trillion for 1,254 development projects, including 764 ongoing and 490 new schemes.
However, the Finance Division restricted the PSDP size to Rs 1.126 trillion, citing fiscal constraints and priority-based funding.
