Food Security, Industry Receive Only Small Share of Requested Development Funds in Proposed Budget
Pakistan’s food security and industrial development sectors have been allocated only a small portion of the funding they requested under the proposed federal development budget for FY2026-27, according to official planning documents.
Combined, the Ministry of National Food Security and Research and the Ministry of Industries and Production sought nearly Rs. 117 billion for development projects. However, the proposed allocations stand at just Rs. 7.2 billion, including Rs. 3.2 billion for food security initiatives and Rs. 4 billion for industrial development.
Of the amount proposed for food security, approximately Rs. 2.27 billion is earmarked for ongoing projects, while only Rs. 92.5 million has been set aside for new schemes.
Agriculture-related projects include commercial olive cultivation, certified potato seed production, camel milk development, and livestock disease surveillance. Funding for these initiatives, however, remains limited.
Within the industrial sector, the largest allocation—Rs. 1.52 billion—has been proposed for the establishment of an industrial park on Pakistan Steel Mills land. The Hub Special Economic Zone has been allocated only Rs. 50 million.
Other proposed allocations include Rs. 200 million for Industrial Design and Automation Centers in Karachi, Lahore, and Sialkot, Rs. 78 million for the Sialkot Sports Goods Development Centre, and Rs. 257.2 million for engineering sector capacity-building projects.
The budget also proposes Rs. 300 million for SME Facilitation Centers, Rs. 300 million for the establishment of 1,000 industrial stitching units, and Rs. 700 million for the revival of the precious stones industry.
The allocations come as agriculture and industry remain key sectors for export growth, employment generation, productivity enhancement, and long-term economic expansion. Final funding levels will be confirmed once the federal budget for FY2026-27 is formally announced and approved.
