Pakistan is set to allocate Rs754bn for development in 2026-27, with major shares for NHA, power, water, provinces, while PM seeks Rs200bn PSDP increase amid fiscal constraints
02 Jun 26, 10:58:23 PKTPakistan is set to allocate Rs754bn for development in 2026-27, with major shares for NHA, power, water, provinces, while PM seeks Rs200bn PSDP increase amid fiscal constraints ISLAMABAD – The federal government is expected to allocate an estimated Rs754 billion for development projects across federal ministries and divisions in upcoming budget 2026-27.
The National Highway Authority and Power Division are likely to receive Rs355 billion, with Rs264 billion earmarked for NHA and Rs 91 billion for the Power Division in the next fiscal year. The Water Resources Division is expected to get Rs179 billion, while Rs251 billion has been estimated for provincial and special area projects. Provincial-specific projects are projected to cost Rs99 billion, with Rs66 billion for merged districts and Rs86 billion for Azad Jammu and Kashmir and Gilgit-Baltistan.
Other allocations include Rs11 billion for the Defence Division, Rs41 billion for the Higher Education Commission, Rs28 billion for the Railways Division, and Rs25 billion for the Planning and Development Division. The Interior Ministry is likely to receive Rs16 billion, while the Information Ministry will be allocated more than Rs 4 billion. Sources said Prime Minister Shahbaz Sharif has expressed a desire to increase the federal Public Sector Development Program budget by an additional Rs200 billion.
However, the Federal Board of Revenue reportedly refused to collect extra revenue to fund the expansion. In response, the Finance Ministry has been directed to adjust the budget, while the IMF has requested raising additional revenue targets to accommodate the larger PSDP.
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