Pursuing a strategy of balanced and inclusive development across the country, the federal government on Friday unveiled Federal Public Sector Development Programme (PSDP) of Rs 1 trillion.
A significant portion of the PSDP has been earmarked for infrastructure development, including projects in the energy, railways, highways and motorways, aviation, and ports sectors. The government has also accorded priority to the social sector, with substantial allocations for higher education, health, governance reforms, and climate change initiatives.
Of the total Rs 1 trillion federal PSDP outlay, the government has proposed to allocate Rs 682.485 billion for federal ministries, while Rs 312.514 billion for public sector corporations. Major allocations within the corporate sector include Rs 224.514 billion for the National Highways Authority (NHA) and Rs 88 billion for projects under the Power Division, including NTDC and PEPCO.
The government proposed to earmark Rs 103.086 billion for the Water Resource Division, Rs 88.286 billion for provincial projects, Rs 56.076 billion for merged districts, Rs 89.023 billion for special areas (GB & AJK), Rs 46 billion for Higher Education Commission, Rs 64 billion for the Cabinet Division, Rs 36.312 billion for Federal Education and Professional Training Division, and Rs 10.9 billion for Defence Division.
Likewise, the government also allocated Rs 10.9 billion for Prime Minister’s Youth Programme, Rs 16.394 billion for Housing and Works Division, Rs 6.65 billion for Industries and Production Division, Rs 19.58 billion for Information Technology and Telecommunication Division, Rs 21.8 billion for Interior and Narcotics Control, Rs 2.4 billion for Law and Justice, Rs 1.78 billion for Maritime Division, and Rs 4.18 billion for National Food Security and Research Division.
Similarly, an amount of Rs 40.657 billion has been proposed for Railways Division, Rs 16.064 billion for National Health Services, Regulations, and Coordination Division, Rs 1.335 billion for Pakistan Atomic Energy Commission, Rs 2.8 billion for Planning Development and Special Initiatives Division, Rs 17 billion for IFRAP (Balochistan Flood Project), , Rs 11.57 billion for Revenue Division, 3.567 billion for Science and Technological Research, Rs 479.7 million for Special Investment Facilitation Council Division, and Rs 4.9 billion for SUPARCO.
Finance Division allocated Rs 1.44 billion
The Finance Division has been allocated Rs1.44 billion in the Public Sector Development Programme (PSDP) 2026-27 for five ongoing development projects aimed at strengthening public financial management, institutional capacity and financial inclusion.
According to budget documents, the total approved cost of the five projects stands at Rs39.377 billion, while cumulative expenditure up to June 30, 2026, has reached Rs34.092 billion.
The largest allocation of Rs 756.666 million has been earmarked for the Pakistan Audit and Account Academy (PAAA), Islamabad, against its total approved cost of Rs2.739 billion.
An amount of Rs386.932 million has been allocated for the Implementation of Online Billing Solution Shell under the PFM Reforms at Federal and Provincial Level (PCI) project, while Modernization and Up-gradation of Pakistan Mint (Phase-II-A) has received Rs164.132 million.
The Implementation and Mainstreaming of Audit Management Information System (AMIS) project has been allocated Rs82.270 million during 2026-27.
Meanwhile, the Women Inclusive Finance project, having a total approved cost of Rs31.413 billion, has been allocated Rs50 million under foreign funding for the upcoming fiscal year.
The budget documents further showed that the total throw-forward liability of the five ongoing projects stood at Rs5.285 billion as of July 1, 2026.