ISLAMABAD: For the upcoming budget for fiscal year 2025-2026, the Government of Pakistan has proposed a Public Sector Development Program (PSDP) budget of R. 1 trilliion (Rs. 1,000 billion)., as per the documents obtained by Bloom Pakistan.
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The sector-wise distribution of the proposed PSDP shows over 60% of the budget being dedicated to infrastructure development, at Rs. 644 billion. This is up from Rs. 661 billion from the last year’s PSDP allocation.
Further breakdown of this shows Rs. 144 billion for the energy sector (power division), Rs. 332 billion for the transport and communication sector, Rs. 109 billion for water, and Rs. 59 billion for residential development.
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Some news reports have also detailed that out of the infrastructure share, a major chunk will be allotted to the National Highway Authority (NHA), to the tune of Rs. 228 billion.
The PSDP allocation for the social segments, including health, education, and sustainable development goals (SDG’s) has been brought down by 25%, from Rs. 200 billion in the last fiscal year to Rs. 150 billion for FY2025-26.
One interesting part of this proposed PSDP framework, however, is the allocation of Rs. 24 billion to the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO). This will likely come out of the Science and Information Technology budget of Rs. 53 billion.
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The Cabinet Division has been allocated Rs. 50.33 billion, and allocation to Aza Jammu & Kashmir (AJ&K), Gilgit-Baltistan, and merged areas amount to Rs. 133 billion.
The proposed allocation for industries has been increased by Rs. 1 billion, to Rs. 8 billion for the upcoming fiscal year.
