The federal government has proposed a Rs1,000 billion development budget for FY2026–27, focusing on infrastructure expansion, energy projects, education, health, IT, and regional development.

According to official budget documents, Rs682.48 billion has been allocated for federal ministries under the Public Sector Development Programme (PSDP).

The National Highway Authority (NHA) has been given Rs224.51 billion, while the Ministry of Communications has also received Rs224 billion, reflecting a continued focus on road and transport infrastructure.

In the water and energy sectors, Rs103.80 billion has been allocated for the Water Resources Division. The Power Division, including NTDC and PEPCO projects, will receive Rs88 billion.

The Cabinet Division’s development allocation stands at Rs64.80 billion, with another entry in the document listing Rs64 billion for the same division.

For the social sector, the Higher Education Commission has been allocated Rs46 billion. The Federal Education and Vocational Training Division will receive Rs36.31 billion, while Rs40.65 billion has been set aside for Pakistan Railways. The National Health Services Division has been allocated Rs16.60 billion.

For regional development, Rs233.33 billion has been earmarked for provinces and special areas. This includes Rs56.07 billion for merged districts and Rs85.02 billion for Azad Jammu & Kashmir and Gilgit-Baltistan.

In the IT and governance sectors, Rs19.58 billion has been allocated for IT and Telecom, while Rs21.82 billion will go to the Interior Division. The Ministry of Climate Change has been allocated Rs2.47 billion.

For strategic initiatives, Rs1 billion has been set aside for CPEC Phase-II projects, and Rs760 million for five Board of Investment schemes.

On the defence side, Rs10.90 billion has been allocated for development projects under the Ministry of Defence, with an additional Rs970.98 million earmarked separately for other defence-related development spending.