The federal government has allocated Rs252 billion under the Public Sector Development Programme for provinces and special areas in the upcoming fiscal year, despite ongoing fiscal constraints and rising development demands across regions.
According to budget documents, the total cost of provincial development projects has reached Rs812 billion, while the federal government continues to finance a major portion of these schemes across different regions of the country.
Read more : Federal PSDP earmarks Rs252bn for regions
Meanwhile, officials noted that by June 30, 2026, nearly Rs277 billion will already have been spent on these projects, while an additional Rs470 billion will still be required to complete ongoing development initiatives.
Furthermore, the federal PSDP for 2026-27 includes Rs99.21 billion in fresh provincial allocations, covering 47 ongoing projects and only eight new schemes, reflecting a continued focus on existing development commitments.
Read more : Federal govt unveils 2026-27 budget priorities
In addition, Sindh received the largest share at Rs50.69 billion, while Punjab was allocated Rs4.75 billion and Khyber Pakhtunkhwa received Rs4 billion, marking the lowest share among all provinces under the federal programme.
Finally, significant funds were also allocated for merged districts, Balochistan, Azad Jammu and Kashmir, and Gilgit-Baltistan, highlighting the federal government’s continued role in regional development financing despite mounting financial pressure.