The federal government has allocated Rs1,000 billion for the development budget in the fiscal year 2026-27, with major funding set aside for federal ministries, infrastructure, education, health, energy and regional development.
According to the budget document, more than Rs682.48 billion has been allocated as the development budget for federal ministries.
The National Highway Authority has received one of the largest shares, with Rs224.51 billion earmarked for the next fiscal year. The Ministry of Communications has also been allocated Rs224 billion.
Water, power, cabinet division funding
The Water Resources Division has been allocated Rs103.80 billion, while Rs88 billion has been set aside for the Power Division, NTDC and PEPCO.
The Cabinet Division has been allocated Rs64.80 billion, while another figure in the budget document places the Cabinet Division allocation at Rs64 billion.
Education, railways, health sector allocations
The Higher Education Commission has been allocated Rs46 billion for development projects.
The Railway Division will receive Rs40.65 billion, while Rs36.31 billion has been allocated for the Federal Education and Vocational Training Division.
For the National Health Services Division, the government has allocated Rs16.60 billion.
The budget document shows Rs233.33 billion has been allocated for provinces and special areas. Merged districts have been allocated Rs56.07 billion in development funds, while Rs85.02 billion has been earmarked for Azad Kashmir and Gilgit-Baltistan.
IT, interior, climate and CPEC projects
The IT and Telecom Division has been allocated Rs19.58 billion, while Rs21.82 billion has been set aside for development funds for the Interior Division.
The Ministry of Climate Change has been allocated Rs2.47 billion.
For new schemes under CPEC 2, the government has allocated Rs1 billion. Meanwhile, Rs760 million has been earmarked for five projects of the Board of Investment.
Defence-related development funding
The budget document shows Rs10.90 billion has been allocated for the Ministry of Defence. Separately, Rs970.98 million has been allocated for defence production.
Budget 2026-27
The total outlay of Pakistan's federal budget 2026-27 is estimated at around Rs 17.5–17.6 trillion, with a focus on fiscal consolidation, IMF compliance, and modest relief measures.
Key figures include an ambitious FBR tax target of around Rs15.3 trillion, non-tax revenue of Rs2.77 trillion, and Petroleum Development Levy of Rs1.73 trillion.
Major expenditures are dominated by debt servicing (Rs7.8 trillion), defence (Rs 2.7–3 trillion), and a constrained federal PSDP of Rs1 trillion (national development outlay Rs 3.2–3.7 trillion).
The budget follows an Economic Survey showing around 3.7% GDP growth in the outgoing year and includes expected 10% salary/pension increases alongside tax base broadening efforts.
