The federal government has put forward a Public Sector Development Programme (PSDP) worth Rs1 trillion for the fiscal year 2026–27, emphasizing substantial investments in infrastructure, water resources, energy, and provincial development, as revealed in official documents released on Thursday.
The total national development budget, encompassing both federal and non-federal initiatives, is projected at Rs3.369 trillion. Of this amount, Rs2.218 trillion is allocated specifically for development projects managed by government institutions, indicating a significant expansion in development spending priorities.
Within the proposed PSDP, Rs682.48 billion is designated for federal ministries and divisions. The National Highway Authority (NHA) stands out as a major beneficiary, with an allocation of Rs224.51 billion, followed by the Water Resources Division, which is set to receive Rs103.80 billion.
The energy sector, including the Power Division, National Transmission and Dispatch Company (NTDC), and Pakistan Electric Power Company (PEPCO), has been allotted Rs88 billion. Other notable allocations include Rs64.08 billion for the Cabinet Division, Rs46 billion for the Higher Education Commission, Rs40.65 billion for Pakistan Railways, and Rs36.31 billion for the Federal Education and Professional Training Division.
Regarding provincial and regional development, Rs233.33 billion has been proposed for provinces and special regions. The merged districts are expected to receive Rs56.07 billion, while Azad Jammu and Kashmir and Gilgit-Baltistan have been allocated Rs85.02 billion collectively.
Additional funds include Rs19.58 billion for the Information Technology and Telecommunication Division, Rs16.06 billion for National Health Services, and Rs21.82 billion for the Interior Division. Furthermore, Rs1 billion has been proposed for new projects under the China-Pakistan Economic Corridor (CPEC) 2.0 within the development programme.
