Pakistan allocates PKR 1.13 trillion for development projects in FY27
Transport and communications get PKR 408 billion; government targets 4% GDP growth in the upcoming fiscal year
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The social sector, covering health, education, and human development, is projected to receive PKR 187 billion
Pakistan is expected to allocate PKR 1.126 trillion for its federal Public Sector Development Programme (PSDP) in FY2026-27, according to the proposed outlay to be reviewed by the Annual Plan Coordination Committee (APCC).
Transport and communications will receive the largest share at PKR 408 billion. Water resources are set to get PKR 140 billion, energy PKR 135 billion, the social sector PKR 187 billion, and science and technology PKR 53 billion.
The proposed outlay forms the basis of the government's development strategy for the next fiscal year.
Which sectors will get the largest PSDP allocations?
Transport and communications projects will receive PKR 408 billion, making them the largest component of the federal PSDP. Water resources projects are expected to get PKR 140 billion.
Energy sector schemes are likely to be allocated PKR 135 billion. The social sector, covering health, education, and human development, is projected to receive PKR 187 billion.
Science and technology projects are expected to get PKR 53 billion. Governance-related projects have been proposed with an allocation of PKR 10.2 billion.
What are Pakistan's growth targets for FY27?
The government has set a GDP growth target of 4% for FY2026-27. The target is slightly above the estimated growth achieved during the current year.
Pakistan's economy recorded GDP growth of 3.7% during the outgoing fiscal year. The growth rate fell short of the original target set for FY2025-26.
Sector-wise, agriculture is expected to grow 3.8% in FY27. Industrial output is targeted to expand 4%, while services, the largest segment, has a growth target of 4.2%.
When will Pakistan's FY27 budget be announced?
The APCC is scheduled to review the proposed PSDP and macroeconomic framework. Its recommendations will be forwarded to the National Economic Council for final approval.
The National Economic Council is Pakistan's highest economic policymaking body. The federal budget for FY2026-27 is expected to be presented on June 5.
The plan supports Pakistan's efforts to sustain economic recovery, improve infrastructure, and address energy and water sector challenges. It aims to maintain fiscal discipline alongside long-term growth.
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