Islamabad, 10 June 2025: PSDP in New Budget the phrase capturing Pakistan’s latest financial push has appeared at the forefront of discussions as the federal government prepares to unveil its ambitious development outlay for the fiscal year 2025–26.
The upcoming budget includes a Public Sector Development Programme (PSDP) allocation totalling Rs1 trillion, aiming to stimulate infrastructure growth, social uplift, and regional connectivity.
Rs683 Billion Earmarked for Federal Ministries and Divisions
According to official budget documents reviewed ahead of the announcement, around Rs683 billion will be distributed among 41 federal ministries and divisions.
Additionally, two major corporations will receive Rs317.2 billion, underlining the government’s continued reliance on state-run enterprises to drive national development.
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PSDP in New Budget, a renewed emphasis is being placed on transport, power, and water infrastructure, with the National Highway Authority (NHA) receiving Rs227 billion to accelerate road construction across provinces.
The Power Division and NTDC are set to benefit from over Rs90 billion, while the Water Resources Division has been allocated Rs133.42 billion highlighting priorities around clean energy and irrigation.
Regional and Provincial Uplift in Focus
Efforts to ensure equitable development have also seen over Rs253 billion earmarked for provinces and special areas. Among these, Rs105.78 billion is set aside for provincial schemes, while the former FATA regions will receive Rs65.44 billion for reconstruction and integration.
Notably, Azad Jammu & Kashmir and Gilgit-Baltistan are allocated Rs82 billion collectively, reinforcing commitments to northern development.
Sector-wise Allocations: Education, Health, and Infrastructure
The new PSDP outlines sectoral investments in critical areas:
| Sector/Division | Allocation (Rs) |
| Parliamentarians’ Schemes | 70 billion |
| Higher Education Commission (HEC) | 39.4 billion |
| Federal Education Projects | 13.5 billion |
| National Health Initiatives | 14.34 billion |
| Ministry of Interior | 12.9 billion |
| Railways Sector | 22.41 billion |
| Planning & Development Ministry | Over 21 billion |
| IT & Telecom Projects | Over 16 billion |
| Housing & Public Works | 15 billion |
| Revenue Division | Over 7 billion |
| Defence Division | 11.55 billion |
| Ministry of Information | Over 6 billion |
| SUPARCO (Space & Upper Atmosphere Research) | 5.41 billion |
| Defence Production | 1.75 billion |
| Food Security | Over 4 billion |
| Science & Technology | 4 billion |
| Maritime Affairs | 3.56 billion |
| Climate Change | 2.7 billion |
| Industries & Production | 1.9 billion |
| Board of Investment | 1.1 billion |
| Inter-Provincial Coordination | 1.17 billion |
| Kashmir Affairs | 1.8 billion |
| Law & Justice Ministry | 1.39 billion |
| National Heritage | 1.67 billion |
| Pakistan Atomic Energy Commission (PAEC) | 760 million |
| Special Investment Facilitation Council | Over 500 million |
Strategic Spending Aligned with National Goals
The allocations underscore a strategic shift towards inclusive development and digital transformation. With investments channeled into education, healthcare, and IT infrastructure, the government aims to lay a solid foundation for long-term socio-economic growth.
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PSDP in New Budget also seeks to support climate resilience, food security, and maritime development sectors gaining urgency due to global and regional shifts.
As the federal budget nears finalisation, PSDP in New Budget is poised to become the centrepiece of the government’s development narrative, aiming not only to upgrade infrastructure but also to catalyse job creation and regional parity in Pakistan’s next fiscal chapter.
