The Ministry of Housing and Works is set to receive a significantly smaller development budget in the upcoming fiscal year, according to budget details obtained by Samaa TV.
The proposed allocation for 2026-27 shows a reduction of Rs8.62 billion compared to the current fiscal year, raising concerns about the government's commitment to addressing Pakistan’s growing housing needs.
According to budget documents, the Ministry of Housing and Works had a development budget of Rs13.44 billion during the current fiscal year. For the upcoming fiscal year, however, the government has proposed allocating only Rs4.82 billion to the ministry.
The reduction comes despite an estimated shortage of more than 10 million housing units across the country, with stakeholders likely to question the limited focus on the housing sector in the federal budget.
Projects worth over Rs40bn receive limited funding
The documents reveal that the total cost of development projects under the Ministry of Housing and Works exceeds Rs40 billion. However, only Rs4.82 billion has been proposed for these projects in the 2026-27 Public Sector Development Programme (PSDP).
The figures suggest that many projects may continue to face funding constraints or slower implementation timelines.
Karachi receives major share
Budget details indicate that a significant portion of the ministry’s development spending will be directed toward Karachi. Several key infrastructure and urban development schemes in the city have been prioritized under the proposed budget.
Among them, the Karachi Green Line project is set to receive the largest allocation.
Green Line project gets highest allocation
According to the documents, Rs1.98 billion has been proposed for the Karachi Green Line project. The Green Line remains one of the flagship urban transport initiatives and has been given the highest allocation among projects under the ministry’s development portfolio.
The allocation highlights the federal government's focus on urban transport and infrastructure improvements in Karachi.
The budget also includes substantial allocations for development works in several densely populated areas of Karachi. More than Rs1.10 billion has been proposed for projects in Orangi, Nazimabad and Liaquatabad.
These funds are expected to support infrastructure upgrades and public development initiatives in the city's major residential districts.
Apart from Karachi, Hyderabad has also been included in the development program. The proposed budget allocates funds for water supply and sewerage projects aimed at improving civic services and urban infrastructure in the city.
Officials view these projects as important for addressing long-standing municipal challenges in Hyderabad.
The development portfolio also includes infrastructure projects in Khyber Pakhtunkhwa. According to the documents, the construction of two major bridges over the Siran River in Mansehra is part of the PSDP.
More than Rs680 million has been proposed for these bridge construction projects.
Questions raised over housing sector priorities
The proposed budget has drawn attention because of the sharp reduction in funding despite Pakistan’s substantial housing deficit.
With more than 10 million housing units reportedly needed nationwide, analysts say the allocation raises questions about the priority being given to housing development in the upcoming fiscal year.
While urban infrastructure projects in Karachi, Hyderabad and Mansehra have received funding, the broader housing sector appears to have received limited attention in the proposed budget framework.
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