Pakistan allocates PKR 730bn for infrastructure in PSDP 2026-27 budget

Pakistan has proposed a PKR 1.126 trillion Public Sector Development Programme for fiscal year 2026-27, with infrastructure receiving the largest allocation at PKR 729.9 billion, or 65% of the total development budget.

The spending plan prioritizes the completion of ongoing national projects across transport, energy, water resources, and social development, according to budget documents.

What is Pakistan's PSDP and how is the 2026-27 budget divided?

The PSDP is Pakistan's annual federal development spending plan, covering infrastructure, social services, and governance projects across the country. For FY2026-27, infrastructure accounts for 65% of total allocations at PKR 729.9 billion.

The social sector receives PKR 187.2 billion, special areas including AJK, Gilgit-Baltistan, and merged districts get PKR 54 billion, and science and technology is allocated PKR 66.4 billion.

Which infrastructure projects receive the biggest allocations?

The communications sector, led by the National Highway Authority, receives PKR 355.9 billion, the single largest sectoral share in the PSDP. The energy sector is allocated PKR 116 billion, water resources PKR 75.8 billion, and housing and planning PKR 54.6 billion. Lawmakers' development schemes have been allocated PKR 63 billion for the upcoming fiscal year.

Among individual projects, PKR 100 billion has been proposed for the Karachi-Quetta-Chaman N-25 highway, PKR 30 billion for the Sukkur-Hyderabad Motorway (M-6), and PKR 25 billion each for the Main Line-1 railway project and the Sindh Coastal Highway. A further PKR 21 billion has been set aside for a road linking Nawabshah and Ranipur.

How much has Pakistan allocated for dams and hydropower in 2026-27?

The water and hydropower sector receives significant funding across three major projects.

PKR 26 billion has been earmarked for the Mohmand Dam, PKR 21 billion for the Dasu Hydropower Project, and PKR 14 billion for the Diamer-Bhasha Dam. A separate PKR 17 billion has been proposed for flood mitigation and climate resilience initiatives.

What are the social sector allocations in the PSDP 2026-27?

The social sector receives a total of PKR 180.6 billion, with PKR 74.5 billion directed toward federal education and higher education and PKR 22.1 billion toward health projects.

PKR 22 billion has been allocated for the construction of Daanish Schools. Around 98% of total PSDP resources are directed toward ongoing schemes rather than new projects, reflecting a focus on completing existing commitments.