The federal government has proposed a development budget of more than Rs1.1 trillion under the federal budget 2026-27, according to official documents outlining sector-wise allocations for the upcoming financial year.
The proposals show Rs754.9 billion earmarked for development spending across federal ministries, forming a major part of the federal budget 2026-27 plan focused on infrastructure, governance, and public sector projects.
Among key allocations, the Ministry of Water Resources has been proposed Rs179 billion for ongoing and new projects. The Cabinet Division is expected to receive Rs72 billion, mainly for development schemes linked to members of parliament.
The Ministry of Defence is set to receive Rs11 billion for development work, while Rs1.1 billion has been proposed for the Ministry of Defence Production. The Board of Investment has been allocated Rs805 million under the draft plan.
For climate-related initiatives, the Ministry of Climate Change has been proposed Rs2.78 billion. The Ministry of Interior is expected to get Rs16 billion, while the Ministry of Information Technology and Telecommunications has been allocated Rs20 billion.
Education-related spending also forms a key part of the federal budget 2026-27, with Rs36 billion proposed for the Federal Education Ministry and Rs4 billion for the Ministry of Information. The Higher Education Commission has been allocated Rs41.19 billion for development projects.
The Finance Division has been proposed Rs1 billion, while railway development projects are set to receive Rs27.83 billion. The documents also show Rs251.68 billion earmarked for provinces and special areas.
A large share of development spending has been allocated to state-owned corporations, with Rs355 billion proposed. Of this, Rs264 billion is reserved for the National Highway Authority, while Rs91 billion is allocated for power sector projects.
The National Assembly and Senate are scheduled to meet in Islamabad on June 5 to begin proceedings on the federal budget 2026-27. The National Assembly session will start at 5 pm, followed by the Senate at 6 pm, according to the President House statement.
Budget discussions are expected to conclude by June 24. Under constitutional requirements, the budget must be passed by June 30 so it can take effect from July 1 across Pakistan.
