ISLAMABAD: The Federal Minister for Finance and Revenue Muhammad Aurangzeb on Friday presented the National Development Programme (NDP) worth Rs3.675 trillion in the National Assembly for approval for the fiscal year 2026-27, comprising Rs2.837 trillion in domestic funding and Rs838 billion in head of foreign assistance.
According to the Public Sector Development Programme (PSDP) 2026-27 budget documents, the Finance Minister presented a total development outlay of Rs 1 trillion, comprising Rs 745 billion in local funding and Rs 255 billion in foreign assistance for federal development projects. In addition, a total of Rs 2.224 trillion, including Rs 1.641 trillion in domestic funding and Rs 583 billion in foreign assistance, has been allocated for provincial development projects for the 2026-27fiscal year.
A total of Rs 451 billion has been proposed in the Budget 2026-27 for State-Owned Enterprise (SOEs) to accelerate economic growth and development.
The government has proposed an allocation of only Rs 1 billion for the China-Pakistan Economic Corridor (CPEC) Phase-II in the upcoming fiscal year 2026-27.
A total of Rs 312.515 billion, including Rs 176.657 billion in local funding and Rs 135.857 billion in foreign assistance, has been earmarked for national corporations for the fiscal 2026-27. Of this amount, Rs 224.515 billion, comprising Rs 165.265 billion in local funding and Rs 59.25 billion in foreign assistance, has been earmarked for development projects of the National Highway Authority (NHA). Similarly, Rs 88 billion, including Rs 11.392 billion in local funding and Rs 76.61 billion in foreign assistance, has been allocated for the Power Division (NTDC/ PEPCO).
The government has also proposed a total allocation of Rs 682.485 billion, including Rs 563.34 billion in local funding and Rs 119.142 billion in foreign assistance for federal ministries and divisions in the Budget 2026-27.
The government has proposed budgetary allocations of Rs 64.08 billion for the Cabinet Division, Rs 10.902 billion for the Defence Division, and Rs 36.3 billion for the Federal Education and Professional Training Division. In addition, Rs 233.385 billion, including Rs 231.085 billion in local funding and Rs 2.3 billion in foreign assistance, has been allocated for Provinces and Special Areas. This includes: (i) Rs 88.286 billion for provincial projects; (ii) Rs 56.076 billion for merged districts; and (iii) Rs 89.023 billion, including Rs 86.723 billion in local funding and Rs 2.3 billion in foreign assistance, for Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (G-B) during fiscal year 2026-27.
The government has further proposed Rs 16.064 billion, including Rs 14.764 billion in local funding and Rs 1.3 billion in foreign assistance, for the National Health Services, Regulations and Coordination Division; Rs 17 billion for Balochistan flood-related projects; Rs 40.657 billion for the Railways Division; and Rs 103.086 billion for the Water Resources Division.
Copyright Business Recorder, 2026
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