Federal Planning Minister Ahsan Iqbal has announced that the government will allocate Rs1,000 billion for development in the 2025–26 budget, down from Rs1,100 billion this fiscal year. He called it a “difficult but focused” adjustment made to stay within fiscal limits.
Speaking at the Annual Plan Coordination Committee (APCC) meeting, he confirmed that Rs250 billion will go directly to Balochistan to boost provincial development. Other regions will also receive funds, but the focus will be on projects of national importance.
Iqbal said the government is setting realistic growth targets for the next fiscal year: 4.2% GDP growth, 4.5% agricultural growth, and 4.3% industrial growth. The livestock sector is also expected to grow by 4.2%. These targets aim to revive economic momentum in a challenging global environment.
The minister stressed that water infrastructure and connectivity projects will be top priorities. He specifically mentioned the Diamer Bhasha Dam, saying its early construction has become urgent due to India’s recent threats. Major road networks will also see funding, including the Karakoram Highway (Phase 2), N-25 Karachi–Quetta–Chaman Highway, and the Hyderabad–Sukkur Motorway.
Despite the budget cut, Iqbal reassured that important ongoing projects won’t be abandoned. “We’re focusing on results, not just numbers,” he said. The government aims to improve water security, reduce travel time, and support economic growth — all while staying within budgetary limits.