Govt proposes over Rs1.1 trillion development budget for FY2026-27

Among major allocations, the Ministry of Water Resources has been proposed Rs179 billion for various projects, while Rs72 billion has been allocated under the Cabinet Division for development schemes linked to Members of the National Assembly.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 2nd, 2026) The federal government has proposed a development budget exceeding Rs1.1 trillion for the upcoming financial year 2026-27, according to official budget documents outlining sector-wise allocations.

As per the documents, Rs754.9 billion has been earmarked for development schemes of federal ministries.

Among major allocations, the Ministry of Water Resources has been proposed Rs179 billion for various projects, while Rs72 billion has been allocated under the Cabinet Division for development schemes linked to Members of the National Assembly.

The Ministry of Defence is expected to receive Rs11 billion for development initiatives, whereas Rs1.1 billion has been proposed for the Ministry of Defence Production.

The board of Investment has been allocated Rs805 million under the proposed plan. For climate-related projects, the Ministry of Climate Change is set to receive Rs2.78 billion.

The Interior Ministry’s development budget has been proposed at Rs16 billion, while the Ministry of Information Technology and Telecommunication may receive Rs20 billion.

In the social sector, Rs36 billion has been allocated for the Federal Ministry of Education, and Rs4 billion for the Ministry of Information.

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For regional and special areas, Rs251.68 billion has been proposed. The Higher education Commission is expected to receive Rs41.19 billion for its development projects.

The Finance Division has been allocated Rs1 billion, while railway development projects are proposed to receive Rs27.83 billion.

State-owned corporations are expected to receive Rs355 billion under the development programme, including Rs264 billion for the National Highway Authority.

Power Division projects have been allocated Rs91 billion under the proposed development spending.

Meanwhile, parliamentary sessions on the federal budget are scheduled to begin in Islamabad on June 5. The National Assembly will meet at 5pm, followed by the Senate at 6pm, according to an official statement from the President’s House.

Budget deliberations are expected to conclude by June 24, with the government aiming to pass the financial plan before June 30, in line with constitutional requirements for it to take effect from July 1.