Pakistan Raises Development Spending Across Key Sectors in New Budget Proposal

Islamabad – The federal government has proposed to allocate large-scale funds to strengthen the country’s development infrastructure in the budget for the upcoming fiscal year 2026-27, under which a total of Rs 729.9 billion has been recommended for the infrastructure sector.

According to official documents, the transport and communication sector has been given the highest importance among the development priorities, for which a proposal to allocate Rs 408.9 billion has been included. According to government sources, this investment will not only improve the road and highway network but will also bring significant improvement in commercial activities.

Giving importance to the water resources sector, it has been proposed to allocate Rs 140.4 billion, the aim of which is to develop water reservoirs, dams and irrigation systems on modern lines.

It has been proposed to allocate Rs 135.6 billion for the energy sector, which will be used to improve the electricity generation and transmission system in the country.

Additionally, Rs 187.2 billion has been allocated for the social sector to improve public welfare projects, poverty reduction and provision of basic amenities.

It is also proposed to allocate Rs 78.5 billion for the projects of the Education and Higher Education Commission, which aims to improve the quality of education and increase opportunities for higher education.

It has been recommended to increase the development budget for the health and nutrition sector to Rs 24.3 billion, while Rs 43.9 billion has been proposed for the science and IT sector, which will play a significant role in advancing the vision of Digital Pakistan.

The budget also includes a proposal to keep Rs 79.4 billion for Azad Kashmir and Gilgit-Baltistan, while Rs 66.1 billion is for the development of merged districts.

According to the document, a total of 801 development projects have been included during the upcoming fiscal year, including 31 from the railways, 45 from the power division, 20 from the planning division, and several projects from various ministries.

According to experts, this budget is an attempt to establish continuity and regional balance in development spending; however, its practical results will depend on effective implementation.