The Pakistan Muslim League-Nawaz-led federal government and its coalition partner, the Pakistan People’s Party (PPP), have reached an agreement on the federal development budget, prioritizing Balochistan with the largest allocation.
Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal announced on Monday that both parties have finalized the Public Sector Development Programme (PSDP) for the next fiscal year. The plan emphasizes increased development spending in underdeveloped provinces, with Balochistan receiving the highest share, followed by Sindh and Khyber Pakhtunkhwa, while Punjab will be allocated the smallest portion.
Specifically, the federal government will invest Rs265 billion in Balochistan, focusing on major transport infrastructure. Sindh is set to receive Rs195 billion for federal projects, and Khyber Pakhtunkhwa will be allocated Rs98 billion. Punjab, despite being the most populous province, will receive Rs72 billion, the lowest among the provinces.
Moreover, Rs150 billion has been designated to be distributed between Azad Jammu and Kashmir and Gilgit-Baltistan based on contextual needs. This agreement resolves previous disagreements between coalition partners over funding for key infrastructure projects.
In a significant development, Ahsan Iqbal confirmed that the long-delayed Sukkur-Hyderabad Motorway will commence construction this year with federal financial support. Additionally, capital allocations will be secured to accelerate the Greater Karachi Bulk Water Supply Scheme (K-IV), aimed at mitigating critical water shortages in Karachi.
Federal funds will also be directed toward rehabilitating regional highways, roads, and irrigation canals. This breakthrough comes amid stringent fiscal constraints as the government prepares its annual budget, balancing spending limits imposed by international lenders with the infrastructure demands of its political allies.
