Pakistan provinces propose PKR 3.1 trillion in development spending for FY27

138 trillion for fiscal year 2026-27, a modest increase from the revised PKR 3.062 trillion allocated in the outgoing year.

The proposals were presented to the Annual Plan Coordination Committee (APCC) through Planning Commission documents.

What is the provincial development budget for FY2026-27?

Pakistan's provinces have collectively proposed PKR 3.138 trillion in development spending for FY2026-27.

Punjab accounts for nearly half that total at PKR 1.450 trillion, followed by Sindh, Khyber Pakhtunkhwa and Balochistan. Provinces plan to finance PKR 2.478 trillion through domestic resources, with foreign assistance covering the remaining PKR 660 billion.

How do the proposed provincial ADPs complement the federal PSDP?

The proposed provincial Annual Development Programs (ADPs) form a key part of Pakistan's national development strategy for FY2026-27.

They are designed to complement the federal government's Public Sector Development Program (PSDP), and both will be reviewed together as policymakers finalize development priorities for the upcoming year.

Punjab leads provincial development spending at PKR 1.450 trillion

Punjab, Pakistan's most populous province, has proposed the highest development allocation of any province at PKR 1.450 trillion. Of that total, PKR 1.306 trillion will be financed through local resources and PKR 144 billion through foreign assistance.

The proposed figure exceeds Punjab's revised FY2025-26 development spending of PKR 1.355 trillion.

Sindh proposes PKR 816 billion, slightly below last year's revised figure

Sindh has proposed a development budget of PKR 816 billion for FY2026-27, with PKR 520 billion financed through local resources and PKR 296 billion through foreign-funded projects.

The proposed outlay is slightly lower than the revised PKR 845 billion allocated for the current fiscal year, reflecting a cautious approach amid resource constraints.

Khyber Pakhtunkhwa raises its ADP to PKR 564 billion

Khyber Pakhtunkhwa has proposed an Annual Development Program of PKR 564 billion, up from a revised allocation of PKR 501 billion in FY2025-26.

The province plans to finance PKR 377 billion through local resources and PKR 187 billion through foreign assistance. The increase reflects continued spending needs in infrastructure, social services and development initiatives in the merged districts.

Balochistan cuts development allocation to PKR 308 billion

Balochistan has proposed development spending of PKR 308 billion for FY2026-27, down from a revised allocation of PKR 361 billion in the outgoing fiscal year.

The province plans to generate PKR 275 billion from local resources, with PKR 33 billion expected from foreign assistance.

Why does provincial development spending matter for Pakistan's economy?

Provincial development spending is critical to Pakistan's growth objectives. Under the 18th Constitutional Amendment, provinces are responsible for a significant share of expenditures on health, education, agriculture and infrastructure.

The Planning Commission asked provinces to submit their program details and budget estimates to help build a consolidated national development framework ahead of APCC deliberations on the country's annual economic plan.