The federal government has allocated a Rs1,000 billion Public Sector Development Programme (PSDP) for the upcoming financial year, with substantial funds earmarked for infrastructure, energy, water, and regional development projects.
According to official documents obtained by Samaa TV, 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).
Also Read: APCC approves Rs50bn for lawmakers’ development projects
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 4.5pc growth target for the agriculture sector, 4.3pc for industrial development, and 4pc 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.
Also Read: Pakistan’s bold Bitcoin move draws IMF scrutiny
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.
Focus on climate change
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.
