Pakistan’s food security and industrial development sectors are set to receive only a fraction of their requested funding in the proposed federal development budget for FY2026-27, according to planning documents.
The two sectors had collectively sought approximately Rs. 117 billion for development projects in the upcoming fiscal year. However, budget proposals currently allocate only Rs. 7.2 billion, including Rs. 3.2 billion for the Ministry of National Food Security and Research and Rs. 4 billion for the Ministry of Industries and Production.
Documents show that the allocation for food security projects includes around Rs. 2.27 billion for ongoing schemes, while only Rs. 92.5 million has been proposed for new initiatives.
The agriculture portfolio includes projects related to commercial olive cultivation, certified potato seed production, camel milk production, and livestock disease monitoring. However, funding levels for these initiatives remain relatively limited.
On the industrial side, the largest proposed allocation is Rs. 1.52 billion for the development of an industrial park on the land of Pakistan Steel Mills. The proposed budget also includes just Rs. 50 million for Hub Special Economic Zone.
Other allocations include Rs. 200 million for Industrial Design and Automation Centers in Karachi, Lahore, and Sialkot, Rs. 78 million for the Sialkot Sports Goods Development Centre, and Rs. 257.2 million for projects aimed at improving the engineering industry’s capacity.
The proposed development budget further includes Rs. 300 million for SME Facilitation Centers, Rs. 300 million for the establishment of 1,000 industrial stitching units, and Rs. 700 million for the revival of the precious stones sector.
The proposed allocations come at a time when both agriculture and industry are being viewed as critical sectors for boosting exports, creating jobs, improving productivity, and supporting long-term economic growth. The final allocations will become clear when the federal budget for FY2026-27 is formally presented and approved.