ISLAMABAD: The Pakistan government has proposed a national development budget worth Rs3,675 billion for the fiscal year 2026–27, according to budget documents obtained by ARY News.
Of the total allocation, Rs1,000 billion has been earmarked for the Federal Public Sector Development Programme (PSDP), while Rs2,224 billion has been set aside for provincial Annual Development Programmes (ADPs). An additional Rs451 billion has been allocated for development expenditures of state institutions.
According to the documents, Rs745 billion of the federal PSDP will be financed through domestic resources, while Rs255 billion is expected from external funding.
Among key sectoral allocations, the National Highway Authority (NHA) has been allocated over Rs224.51 billion.
The Ministry of Water Resources will receive Rs103.8 billion for water storage and infrastructure improvements, while Rs88 billion has been allocated to the Power Division for energy-related projects.
The Cabinet Division has been allocated Rs64.8 billion for Islamabad and special initiatives. A further Rs233.38 billion has been earmarked for development projects in provinces and special areas.
For the education sector, Rs46 billion has been allocated to the Higher Education Commission (HEC), while Rs36.31 billion has been set aside for the Ministry of Education and Professional Training. The Railways Division will receive Rs40.65 billion for modernisation of the railway network.
In the infrastructure sector, Rs30 billion has been allocated for the Karachi–Quetta–Chaman highway sections, Rs22 billion for the doubling of the Khuzdar–Kuchlak segment of the N-25, and an additional Rs48 billion for other sections of the same highway.
The Prime Minister’s Youth Programme has been allocated Rs10.9 billion, while Rs3 billion has been earmarked for IT-focused youth initiatives.
The government has also prioritised the expansion of the Danish Schools network in underserved regions. Allocations include Rs4.2 billion for Skardu, Astore and Sultanabad, Rs1.33 billion for a project in Kari, Islamabad, and Rs6.6 billion for schools in Azad Jammu and Kashmir, Balochistan and Sindh.
Other notable allocations include Rs10.9 billion for defence monitoring capabilities, Rs2.55 billion for the completion of New Gwadar International Airport, and Rs1.05 billion for the Quantum Valley Pakistan project.
A total of Rs2.47 billion has been allocated for the Climate Change Division, while the revised Green Pakistan Programme will receive Rs2.33 billion for afforestation efforts. Additionally, Rs76 crore has been set aside for the Board of Investment, and Rs65.5 crore for the Digital Economy Enhancement Project in budget 2026-27.
According to the documents, Rs89 billion has been jointly allocated for Azad Jammu and Kashmir and Gilgit-Baltistan, while Rs56.7 billion has been earmarked for the development of merged districts of Khyber Pakhtunkhwa.
The budget 2026-27 documents state that the core focus of the development outlay is the timely completion of ongoing projects rather than the launch of new schemes.
