ISLAMABAD: The federal government has allocated a Rs1,000 billion Public Sector Development Programme (PSDP) for the upcoming financial year 2025-26, with substantial funds earmarked for infrastructure, energy, water, and regional development projects.
According to official documents of the federal government, Rs662 billion has been designated for 31 federal ministries and divisions, while Rs332 billion will be channelled towards state-run corporations, including the National Highway Authority (NHA).
The Annual Plan Coordination Committee (APCC) has also approved the macroeconomic targets for the next fiscal year, setting the stage for strategic national development.
Key allocations in federal PSDP 2025-26:
Water projects: Rs140 billion
Power projects: Rs104 billion
Pakistan Railways: Rs24.71 billion
Ministry of Planning projects: Rs12.32 billion
Ministry of Defence: Rs11.55 billion
Space & Upper Atmosphere Research Commission (Suparco): Rs24.15 billion
Azad Jammu and Kashmir & Gilgit-Baltistan: Rs82 billion (proposed)
Merged districts in Khyber Pakhtunkhwa: Rs70.44 billion (proposed)
Provincial projects: Rs93.44 billion
Higher Education Commission (HEC): Rs45 billion
National health projects: Rs15.34 billion
Ministry of Interior: Rs10.90 billion
Pakistan Atomic Energy Commission: Rs4.75 billion
Ministry of Parliamentary Affairs: Rs3 billion
Ministry of Maritime Affairs: Rs3.36 billion
Food security initiatives: Over Rs2 billion
Earlier, the Annual Plan Coordination Committee (APCC) approved macroeconomic targets for the next fiscal year, proposing a GDP growth rate of 4.2 per cent for 2025–26.
According to official documents, the government has also proposed a 4.5 per cent growth target for the agriculture sector, 4.3 per cent for industrial development, and 4 per cent for the services sector — all marginally higher than the subdued growth recorded in the outgoing fiscal year.
The meeting, chaired by Planning Minister Ahsan Iqbal, also reviewed allocations under the Public Sector Development Programme (PSDP), with Rs50.33 billion allocated for development projects under the Cabinet Division.
Notably, Rs50 billion has been earmarked for constituency-level development schemes of Members of Parliament (MPs), despite continued criticism that such discretionary spending lacks transparency and often overlaps with provincial mandates.
Among the Cabinet Division projects are the Islamabad Technopark, National Archives infrastructure, and various power supply initiatives aimed at improving connectivity and institutional capacity.
With increasing emphasis on environmental sustainability, the APCC documents show that Rs2.78 billion has been allocated for climate change-related initiatives. Of this, Rs2.2 billion will go toward Phase-I of the Green Pakistan Programme, which includes tree plantation, forest regeneration, and climate resilience efforts.
The federal budget is expected to be officially presented on June 10, followed by debates in parliament before final approval.
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