Pakistan’s four provinces have proposed a combined development budget of Rs3,138 billion for fiscal year 2026-27, reflecting an increase of Rs76 billion compared to the current fiscal year.
The new provincial development plans show Punjab taking the lead with the largest allocation, even exceeding the proposed federal development budget for the upcoming year.
According to budget documents, the provinces plan to spend a total of Rs3,138 billion on development projects during fiscal year 2026-27.
This represents an increase of Rs76 billion over the current fiscal year's annual development allocation. The proposed development spending will be financed through a combination of provincial resources and foreign assistance.
Provinces to fund projects through local resources
The documents show that Rs2,478 billion of the total development budget will come from the provinces’ own resources.
Also Read: Pakistan to see more inflation with petroleum surcharge plan
Meanwhile, Rs660 billion is expected to be financed through external assistance and foreign-funded development programs. The allocations are aimed at supporting infrastructure, public services and other development initiatives across the country.
Punjab tops all provinces
Punjab has emerged as the biggest spender among all provinces and has even surpassed the proposed federal development budget. The Punjab government has proposed a development budget of Rs1,450 billion for fiscal year 2026-27.
The allocation is Rs95 billion higher than the province’s development budget for the current fiscal year.
Also Read: Federal development budget proposed at Rs1,126bn
According to the proposal, Punjab will finance most of its development spending through its own resources. The province plans to allocate Rs1,306 billion from local resources.
An additional Rs144 billion is expected to come from foreign assistance.
Sindh proposes Rs816bn development
Sindh has proposed a development budget of Rs816 billion for the new fiscal year. Of this amount, Rs520 billion will come from local resources.
The province also plans to utilize Rs296 billion through foreign-funded development assistance.
KP sets Rs564bn development budget
Khyber Pakhtunkhwa has proposed a development budget of Rs564 billion for fiscal year 2026-27. The province intends to spend Rs377 billion from its own resources.
Another Rs187 billion will be financed through foreign assistance for development projects.
Also Read: Budget 2026-27: IMF asks Pakistan to raise GST to 19%
The Balochistan government has proposed a development budget of Rs308 billion. According to the plan, Rs275 billion will be funded through provincial resources.
The remaining Rs33 billion is expected to come from foreign aid and external assistance programs.
Development spending to support provincial growth
The proposed budgets highlight the provinces’ focus on expanding development activities during the next fiscal year.
With higher allocations and continued support from external financing, provincial governments aim to fund infrastructure projects, social sector initiatives and other development priorities across their respective regions.
.jpg)
