Federal Minister for Planning Ahsan Iqbal chaired the Annual Plan Coordination Committee meeting in Islamabad to discuss the Budget for the fiscal year 2026–27. He highlighted that Pakistan’s development budget has remained largely unchanged over the past eight years, with Rs1,126 billion allocated under the Public Sector Development Programme (PSDP) for the current year.
Iqbal stressed that approximately Rs10,000 billion is necessary to complete the ongoing development projects, while a significant portion of the budget is currently consumed by debt servicing obligations. He also pointed out that, in terms of development funding, the provinces have become comparatively wealthier than the federal government.
In a significant development, the minister emphasized that the federal government prioritizes the completion of development projects. Proposals amounting to Rs720 billion for new initiatives have been prepared, and work is ongoing on PC-1 documents for projects valued at Rs5,000 billion. However, he noted that non-essential projects might be discontinued in the future to manage resources efficiently.
Iqbal further remarked that the federal government is facing a resource shortfall relative to the provinces, which is causing a widening gap between federal and provincial development budgets. This disparity poses challenges for balanced development across the country.
The situation remains fluid as discussions continue on how to address these financial constraints and ensure the successful execution of development plans.
