The federal government has proposed Rs252 billion for provinces and special areas under the 2026-27 Public Sector Development Programme. The allocation highlights Islamabad’s continued role in financing regional development despite fiscal pressures. Provincial governments, development agencies, and residents stand to benefit from the planned spending.
Budget documents show that provincial and regional development projects carry a combined cost of Rs812 billion. By the end of June 2026, approximately Rs277 billion will have been spent on these schemes. However, another Rs470 billion will still be required to complete the projects. The federal PSDP includes 47 ongoing projects and eight new initiatives across the provinces.
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Among the four provinces, Sindh has received the largest federal allocation at Rs50.69 billion. Balochistan follows with Rs39.75 billion for development schemes already under implementation. Punjab has been allocated Rs4.75 billion, while Khyber Pakhtunkhwa received the lowest share at Rs4 billion. The allocations reflect differing development priorities and project portfolios across the provinces.
Meanwhile, the federal government has earmarked Rs66.36 billion for the merged districts. Of this amount, Rs37 billion will support a long-term development plan focused on infrastructure and public services. Balochistan will also receive a Rs33 billion block allocation, including a special Rs5 billion package announced by the prime minister.
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Additionally, more than Rs47 billion has been allocated for development projects in Azad Jammu and Kashmir and Gilgit-Baltistan. These funds will support infrastructure upgrades and regional development initiatives. The proposed spending underscores the federation’s commitment to completing key projects despite ongoing financial constraints and rising development costs.