ISLAMABAD, April 23: Pakistan is expected to raise its federal development budget by Rs900 billion in the upcoming fiscal year 2025–26, nearly doubling the Public Sector Development Programme (PSDP) allocation from Rs1,100 billion to Rs2,000 billion, according to official sources.
The increased outlay is aimed primarily at completing ongoing infrastructure and social sector projects, with sources confirming that fewer than 100 new schemes will be introduced. Around 650 development projects are expected to be included in the PSDP for the next fiscal year.
This marks a shift in approach as the government aims to reduce the total cost of PSDP projects from Rs11 trillion to Rs9 trillion. During the current fiscal year, 276 projects are expected to reach completion, while 168 schemes will be excluded from the PSDP portfolio.
Ministries have already submitted proposed development projects to the Planning Commission, which is currently assessing them for potential inclusion in the final budget document.
