Pakistan earmarks PKR 754 billion in PSDP 2026-27 for highways, water and energy

Pakistan's PSDP 2026-27 proposes PKR 754 billion in federal development spending, with highways, water resources and energy taking the largest shares

Pakistan has proposed allocating more than PKR 754 billion for development projects across federal ministries and divisions in fiscal year 2026-27, with the largest shares earmarked for highways, water resources and energy infrastructure, according to budget documents.

The allocations form part of the federal Public Sector Development Programme for the upcoming fiscal year.

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

The Public Sector Development Programme for FY2026-27 channels federal development spending across infrastructure, social services and regional projects.

The National Highway Authority receives the largest single allocation at PKR 264 billion. Water resources and energy follow with PKR 179 billion and PKR 91 billion respectively, together accounting for the bulk of the proposed development outlay.

Which sectors receive the most development funding?

The National Highway Authority leads all federal entities with a proposed PKR 264 billion allocation under the development program. The Water Resources Division is set to receive PKR 179 billion for ongoing and new projects, while the Energy Division is proposed to receive PKR 91 billion. The government has also set aside PKR 72 billion for development schemes recommended by members of parliament.

How much is earmarked for provinces and special areas?

Provinces and special areas would receive a combined PKR 251 billion under the proposed program. More than PKR 99 billion of that amount is planned for projects of a provincial nature.

The government has also proposed allocating more than PKR 66 billion for the merged districts of the former Federally Administered Tribal Areas and Provincially Administered Tribal Areas, with another PKR 86 billion proposed for Pakistan-administered Kashmir and Gilgit-Baltistan.

What development funding is proposed for education and health?

The Higher Education Commission is proposed to receive over PKR 41 billion in development funding, while the Federal Education and Professional Training Division is set to receive more than PKR 36 billion. The federal health sector is expected to receive PKR 22 billion, and the Interior Ministry is proposed to receive PKR 16 billion under the development program.

Which other federal bodies are included in the PSDP?

The Railways Division is set to receive PKR 27.88 billion, while the Planning and Development Division would receive PKR 25 billion.

The Defense Division could receive PKR 11 billion for development projects, and the Pakistan Space and Upper Atmosphere Research Commission, known as SUPARCO, is expected to receive PKR 5.5 billion. More than PKR 4 billion has been earmarked for the Information Ministry.

The proposed allocations remain subject to approval as part of Pakistan's federal budget process for FY2026-27.