Federal govt releases Rs2.77 billion for Balochistan development projects

Funds issued under PSDP 2025-26 cover road, water, and municipal infrastructure schemes across multiple districts

The federal government has released Rs2.77 billion for Balochistan’s development schemes under the Public Sector Development Programme (PSDP) for fiscal year 2025-26, according to official documents shared with the Senate Standing Committee on Planning, Development and Special Initiatives.

The working paper shows that against a revised allocation of Rs24.49 billion for Balochistan under “Demand No. 109 – Other Development Expenditure, Provinces and Special Areas,” total releases so far amount to Rs2.77 billion. Overall, provinces were allocated Rs92.79 billion under this demand head, with total disbursements reaching Rs3.01 billion — of which Balochistan accounts for nearly 92 percent.

The province’s releases represent a little over 11 percent of its own revised allocation, consistent with early-year disbursement trends. The Balochistan portfolio focuses primarily on road connectivity, water resources, and municipal infrastructure — sectors identified as key constraints to the province’s growth.

Road projects listed include construction of black-top roads and bypasses in remote districts, as well as major links connecting agricultural valleys and mineral zones to national corridors. Key schemes include the 110-km Chedagi (Iran border)–Panjgur Road, the 103-km Zhob–Mekhtar link via Murgha Kibzai, and the Northern Bypass in Loralai.

Water-related initiatives such as the Ghand Dam project in Dera Bugti aim to enhance water security through small and medium reservoirs to stabilize irrigation and drinking water supplies in drought-prone areas.

Urban improvement projects in Quetta and other cities include drainage, streetlighting, solid waste handling, and traffic management systems under “smart city”-style interventions, along with community facilities such as schools and health infrastructure.

Punjab recorded a record Rs442 billion provincial surplus during the first quarter, while Sindh posted Rs209 billion. Khyber Pakhtunkhwa and Balochistan reported smaller surpluses of Rs77 billion and Rs54 billion, respectively.

Officials noted that most continuing projects are receiving regular funding tranches between Rs196 million and Rs700 million to sustain progress through the first half of the fiscal year, while new or feasibility-stage projects await PC-I approval and procurement completion.

According to the report, utilization remains modest but aligns with historical patterns, as disbursements typically accelerate in the latter half of the fiscal year once projects reach billable milestones and procurement processes conclude.

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