Islamabad, June 2, 2025: The federal government has unveiled a Rs1,000 billion Public Sector Development Programme (PSDP) for the fiscal year 2025–26, allocating major funds toward infrastructure, energy, water, and regional development projects.
According to official sources, Rs662 billion will be directed to 31 federal ministries and divisions, while Rs332 billion is earmarked for state-owned enterprises, including the National Highway Authority (NHA).
The Annual Plan Coordination Committee (APCC) has also approved key macroeconomic targets for the upcoming year, laying the groundwork for national development strategies.
Key allocations in PSDP 2025–26:
- Water sector: Rs140 billion
- Power sector: Rs104 billion
- Pakistan Railways: Rs24.71 billion
- Ministry of Planning: Rs12.32 billion
- Ministry of Defence: Rs11.55 billion
- SUPARCO (Space & Upper Atmosphere Research Commission): Rs24.15 billion
- AJK & Gilgit-Baltistan: Rs82 billion (proposed)
- Merged districts of KP: Rs70.44 billion (proposed)
- Provincial projects: Rs93.44 billion
- Higher Education Commission (HEC): Rs45 billion
- National health initiatives: Rs15.34 billion
- Ministry of Interior: Rs10.90 billion
- Pakistan Atomic Energy Commission: Rs4.75 billion
- Ministry of Parliamentary Affairs: Rs3 billion
- Ministry of Maritime Affairs: Rs3.36 billion
- Food security programmes: Over Rs2 billion
The APCC has projected a GDP growth target of 4.2% for FY 2025–26. Sector-specific targets include:
- Agriculture: 4.5%
- Industry: 4.3%
- Services: 4.0%
These projections reflect a modest rebound from the sluggish growth of the outgoing fiscal year.
Cabinet division and parliamentary schemes
A total of Rs50.33 billion has been allocated for development projects under the Cabinet Division. Of this, Rs50 billion is dedicated to constituency-level development schemes for Members of Parliament (MPs) — a practice often criticized for lacking transparency and overlapping with provincial jurisdictions.
Notable Cabinet Division projects include Islamabad Technopark, National Archives infrastructure and Power supply and connectivity improvements.
Climate change commitments
In a nod to environmental priorities, the budget allocates Rs2.78 billion for climate change-related projects. This includes Rs2.2 billion for Phase-I of the Green Pakistan Programme, focusing on tree plantation, forest regeneration and climate resilience and adaptation efforts
The federal budget for FY 2025–26 is scheduled to be presented on June 10, followed by parliamentary debates and approval. The PSDP remains a cornerstone of the government’s development agenda, with a focus on strategic investment, economic resilience, and sustainability.
