ISLAMABAD: The federal government has unveiled a record national development plan worth Rs 4.224 trillion for the fiscal year 2025–26, as earlier approved by the National Economic Council (NEC). Budget documents confirm this is the highest-ever investment in the country’s development sector.
Of the total outlay, Rs 1.00 trillion has been allocated for the federal Public Sector Development Programme (PSDP), while Rs 2.869 trillion is earmarked for the provincial Annual Development Programs (ADPs). An additional Rs 355 billion is set aside for the development of State-Owned Enterprises (SOEs).
The federal PSDP for FY 2025–26 reflects a cut of Rs 400 billion down 28.6%—from the outgoing fiscal year’s allocation of Rs 1.4 trillion. The government attributes this reduction to a renewed focus on priority and ongoing projects with greater economic impact.
Within the PSDP, Rs 317.2 billion is allocated to key corporations, including Rs 226.981 billion for the National Highway Authority (NHA) and Rs 90.225 billion for NTDC/PEPCO. Federal ministries and divisions are collectively allocated Rs 682.792 billion, marking an 18% decrease from the revised allocation of Rs 833.145 billion in the outgoing year. The original allocation for these entities in FY 2024–25 had stood at Rs 1.33 trillion, indicating a significant shift in development priorities.
The Aviation Division receives no allocation for FY 2025–26, in contrast to Rs 7.3 billion last year. Meanwhile, the Defence Division sees its budget double to Rs 11.553 billion from Rs 5.6 billion, reflecting a 106% increase.
Other notable allocations include Rs 1.10 billion for the Board of Investment, Rs 70.3 billion for the Cabinet Division, Rs 2.78 billion for the Climate Change Division, Rs 50 million for the Commerce Division, and Rs 149.1 million for the Communication Division (excluding NHA). The Defence Production Division will receive Rs 1.786 billion, the Establishment Division Rs 495 million, and the Federal Education Division Rs 18.58 billion.
The Higher Education Commission is allocated Rs 39.488 billion, down 40.4% from Rs 66.315 billion in FY 2024–25. Housing and Works is allotted Rs 15 billion, the Human Rights Division Rs 23 million, and the Industries and Production Division Rs 1.9 billion.
The Information and Broadcasting Division receives Rs 6 billion, the Information Technology Division Rs 16.22 billion, and the National Food Security and Research Division Rs 4.2 billion. National Health Services will get Rs 14.343 billion, Pakistan Atomic Energy Commission Rs 761 million, and the Petroleum Division Rs 718.580 million.
The Planning and Development Division is allocated Rs 2 billion, Railways Rs 22.415 billion, and the Revenue Division Rs 7.150 billion. Science and Technology will receive Rs 4.792 billion, SUPARCO Rs 5.418 billion, and Water Resources Rs 133.424 billion—the highest among individual sectors.
Special Areas, including Azad Jammu and Kashmir and Gilgit-Baltistan, are set to receive Rs 82 billion. For the provincial projects and merged districts of Khyber Pakhtunkhwa, the allocation stands at Rs 105.785 billion, with Rs 65.44 billion specifically for the merged districts.
The government emphasized that the reduced PSDP is intended to streamline development efforts by concentrating resources on high-impact and ongoing projects, enhancing efficiency and avoiding duplication.
