The federal government has proposed a total allocation of Rs1.126 trillion for the upcoming Public Sector Development Programme (PSDP) for the fiscal year 2026-27. This includes a foreign exchange component of Rs267 billion, while the remaining funds will be sourced locally, according to official data.
Breakdown of Allocations
An allocation of Rs754.908 billion has been proposed for various ministries and divisions, while corporations, including the National Highway Authority (NHA) and NTDC/PEPCO, have been allocated Rs355 billion. Additionally, Rs5.5 billion has been set aside for project liabilities.
For provinces and special areas, the proposed allocation stands at Rs251.683 billion, slightly lower than the Rs253.23 billion allocated in the current fiscal year's PSDP. Special areas, including Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB), have been allocated Rs86.100 billion, up from Rs82 billion in FY2025-26. The merged districts of Khyber Pakhtunkhwa will receive Rs66.368 billion, compared to Rs65.444 billion previously. Provincial projects have been allocated Rs99.215 billion, down from Rs105.786 billion in the current year.
Ministries and Divisions
Of the Rs754.908 billion for ministries and divisions, the rupee component is Rs632.796 billion, with Rs122.112 billion in foreign exchange. Key allocations include:
- Water Resources Division: Rs179 billion (up from Rs133.424 billion)
- Federal Education and Professional Training Division: Rs36 billion (up from Rs18.580 billion)
- Higher Education Commission: Rs41.198 billion (up from Rs39.488 billion)
- National Health Services, Regulations and Coordination Division: Rs22 billion (up from Rs14.343 billion)
- Information Technology and Telecom Division: Rs20 billion (up from Rs16.227 billion)
- Railways Division: Rs27.883 billion (up from Rs22.415 billion)
- Housing and Works Division: Rs4.824 billion (down from Rs15.006 billion)
- Information and Broadcasting Division: Rs4 billion (down from Rs6.027 billion)
Corporations
For corporations, the total development funds of Rs355 billion include a rupee component of Rs210.092 billion and foreign exchange of Rs144.908 billion. NHA has been allocated Rs264 billion, higher than Rs226.982 billion in the current year. NTDC/PEPCO will receive Rs91 billion, slightly up from Rs90.226 billion.
Other notable allocations include Rs1.5 billion for Pakistan Atomic Energy Commission (up from Rs761 million), Rs1 billion for SIFC (up from Rs503 million), and Rs5.5 billion for SUPARCO (up from Rs5.419 billion). The Planning, Development and Special Initiatives Division has been allocated Rs24.503 billion.
