The federal government has proposed a development budget of Rs. 1,000 billion for the fiscal year 2026–27, with significant allocations directed toward infrastructure, energy, education, health, IT, and regional development projects.
According to official budget documents, Rs. 682.48 billion has been earmarked for federal ministries under the Public Sector Development Program (PSDP).
The National Highway Authority (NHA) has received one of the largest shares at Rs. 224.51 billion, while the Ministry of Communications has also been allocated Rs. 224 billion for transport and infrastructure projects.
In the water and energy sectors, the Water Resources Division has been allocated Rs. 103.80 billion. The Power Division, along with NTDC and PEPCO-related projects, has been assigned Rs. 88 billion.
The Cabinet Division’s development allocation stands at Rs. 64.80 billion, with another entry in the document listing Rs. 64 billion for the same division.
In social sector spending, the Higher Education Commission has been allocated Rs. 46 billion, while Rs. 36.31 billion has been set aside for the Federal Education and Vocational Training Division. The Railway Division will receive Rs. 40.65 billion, and the National Health Services Division has been allocated Rs. 16.60 billion.
For provincial and regional development, Rs. 233.33 billion has been earmarked. This includes Rs. 56.07 billion for merged districts and Rs. 85.02 billion for Azad Jammu & Kashmir and Gilgit-Baltistan.
In technology and governance, the IT and Telecom Division has been allocated Rs. 19.58 billion, while the Interior Division will receive Rs. 21.82 billion in development funding. The Ministry of Climate Change has been allocated Rs. 2.47 billion.
For strategic and investment-related initiatives, Rs1 billion has been set aside for CPEC Phase-II projects, while Rs760 million has been allocated for five projects under the Board of Investment.
On defence, Rs. 10.90 billion has been allocated for development projects of the Ministry of Defence, with an additional Rs. 970.98 million earmarked separately for defence-related development spending.