Pakistan Proposes Rs4.26 Trillion Development Budget For FY2026-27
- The government has proposed a national development budget of Rs4.264 trillion for the next fiscal year.
- Provinces are expected to receive Rs3.138 trillion, while the federal development budget is set at Rs1.126 trillion.
- Infrastructure, transport, education, health, IT, and special regions are among the key spending priorities.
The federal government has proposed a national development budget of Rs4,264 billion for the fiscal year 2026-27, with a major focus on infrastructure, transport, education, health, and regional development projects across the country.
According to budget documents, the proposed development outlay includes a federal development budget of Rs1,126 billion, while provincial governments are expected to account for Rs3,138 billion in development spending.
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Among the provinces, Punjab is set to receive the largest development allocation of Rs1,450 billion. Sindh’s proposed development budget stands at Rs816 billion, followed by Khyber Pakhtunkhwa with Rs564 billion and Balochistan with Rs308 billion.
The proposed budget places strong emphasis on infrastructure development, with Rs729.9 billion recommended for infrastructure-related projects. This includes Rs408.9 billion for transport and communications schemes aimed at improving connectivity and supporting economic growth across the country.
Water resource projects have also been prioritized, with the government proposing an allocation of Rs135 billion for dams, irrigation systems, and other water-related initiatives.
The social sector is expected to receive Rs187 billion under the proposed development framework. Within this allocation, Rs78.5 billion has been earmarked for education and higher education projects, while Rs24.3 billion has been proposed for the health sector to support healthcare services and infrastructure improvements.
The government has also recommended allocating Rs43.9 billion for science and information technology projects to promote innovation, digital development, and technological advancement.
In addition, Rs70 billion has been proposed for Sustainable Development Goals (SDGs)-related programmes, while governance and administrative improvement initiatives are expected to receive Rs10.2 billion.
Special allocations have also been proposed for strategically important regions. According to the budget documents, Azad Jammu and Kashmir and Gilgit-Baltistan are expected to receive a combined Rs79.4 billion for development projects.
Meanwhile, the merged districts are proposed to receive Rs66 billion to support infrastructure development, public services, and economic growth initiatives in the region.
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