Provinces propose Rs3.138 trillion development outlay for FY27

The four provincial governments have proposed a combined development outlay of Rs3.138 trillion for fiscal year 2026-27, up Rs76 billion from the Rs3.062 trillion budgeted for the outgoing fiscal year, according to official documents.

Of the proposed total, Rs2.478 trillion will be financed through domestic resources, while Rs660 billion is expected to come from foreign assistance.

Punjab has proposed the largest development programme at Rs1.45 trillion, comprising Rs1.306 trillion in local funding and Rs144 billion in foreign assistance.

The allocation represents an increase of Rs95 billion from Punjab’s development budget for FY2025-26.

Sindh has proposed a development outlay of Rs816 billion, including Rs520 billion from domestic resources and Rs296 billion in foreign assistance.

Its proposed allocation is Rs29 billion lower than the amount budgeted for the current fiscal year.

Khyber Pakhtunkhwa has proposed Rs564 billion for its development programme, consisting of Rs377 billion in local funding and Rs187 billion in foreign assistance.

The province has raised its proposed development allocation by Rs63 billion compared with FY2025-26.

Balochistan has proposed a development budget of Rs308 billion, including Rs275 billion from local resources and Rs33 billion in foreign assistance. Its proposed outlay is Rs53 billion lower than the current fiscal year’s allocation.

For FY2025-26, the four provinces had budgeted a combined development programme of Rs3.062 trillion, including Rs2.404 trillion from domestic resources and Rs658 billion in foreign assistance.

The provincial governments have submitted their proposals to the federal government for incorporation into the national budget framework for FY2026-27.