MNAs to Get Rs. 70 Billion for Development Projects in Upcoming Budget

The federal government has proposed allocating more than Rs. 70 billion for development schemes linked to members of parliament in the upcoming FY2026-27 Public Sector Development Programme (PSDP), despite growing fiscal constraints and limited room for new development projects.

Sources told ProPakistani that the government has earmarked Rs. 70 billion for the Sustainable Development Goals (SDGs) Achievement Programme, a funding mechanism widely used to finance development projects recommended by parliamentarians across the country.

The allocation comes at a time when the federal government is struggling to accommodate development spending demands. Planning authorities disclosed that ministries and divisions sought more than Rs. 4.1 trillion for development projects in FY2026-27, while the Finance Division provided an indicative budget ceiling of only Rs. 1.126 trillion for the federal PSDP.

Official documents show that the SDGs Achievement Programme will account for around 6.2 percent of the proposed federal development budget for next year. The allocation remains unchanged from the original FY2025-26 level of Rs. 70 billion, even as funding pressures continue to intensify across multiple sectors.

The proposed PSDP prioritizes infrastructure projects, which will receive nearly Rs. 730 billion or 65 percent of the total federal development budget. Transport and communications projects alone have been allocated about Rs. 409 billion, followed by water projects with Rs. 140.4 billion and energy schemes with Rs. 135.6 billion.

Planning officials have warned that the federal development portfolio faces a throw-forward liability exceeding Rs. 10 trillion, while more than 90 percent of projects are affected by cost overruns or delays. The government has also indicated that new projects will largely be discouraged, with resources focused on strategic ongoing schemes and foreign-funded projects.