Rs1tri PSDP 2026–27 proposed with major focus on infrastructure and water resources

WEB DESK: The federal government has proposed a Public Sector Development Programme (PSDP) of Rs1tri for the fiscal year 2026–27, with significant allocations earmarked for infrastructure, water resources, energy and provincial development, official documents showed on Thursday.

The overall national development outlay, which includes federal and non-federal programmes, has been estimated at Rs3.369tri.

Of this, Rs2.218tri has been set aside for development schemes of government institutions, reflecting a broad expansion in development spending priorities.

Major sectoral allocations

Under the proposed PSDP, Rs682.48 billion has been allocated for federal ministries and divisions. The National Highway Authority (NHA) is expected to receive Rs224.51b, making it one of the largest recipients of development funds, followed by the Water Resources Division with Rs103.80b.

The Energy sector, including the Power Division, NTDC and PEPCO, has been allocated Rs88b. Other key allocations include Rs64.08b for the Cabinet Division, Rs46b for the Higher Education Commission, Rs40.65b for Pakistan Railways, and Rs36.31b for the Federal Education and Professional Training Division.

Provincial and regional development outlay

For regional development, Rs233.33b has been proposed for provinces and special areas. The merged districts are expected to receive Rs56.07b, while Azad Jammu and Kashmir and Gilgit-Baltistan have been allocated Rs85.02b.

In addition, Rs19.58b has been set aside for the Information Technology and Telecommunication Division, Rs16.06b for National Health Services, and Rs21.82b for the Interior Division.

A further Rs1b has been proposed for new CPEC 2.0 schemes under the development programme.