Budget 2025–26: PSDP set at Rs1 trillion with focus on infrastructure, social development

Under the federal budget for FY2025–26, the government has allocated Rs4.224 trillion for the Public Sector Development Programme (PSDP), reflecting a continued focus on infrastructure expansion and social development.

According to official documents, the Federal PSDP will receive Rs1,000 billion, while Rs2,869 billion has been allocated to provincial Annual Development Plans (ADPs).

Additionally, Rs255 billion will be provided to state-owned enterprises (SOEs) for development projects.

Officials stated that 60 per cent of the Federal PSDP will be allocated to core infrastructure projects, including roads, railways, and connectivity corridors.

In contrast, provincial governments will spend the bulk of their development budgets on education, health, water, and other social sector initiatives.

“This distribution is a direct outcome of the devolution of powers under the 18th Constitutional Amendment,” a Planning Commission official said.

Key projects

Major projects under the Federal PSDP include:

• Karachi–Chaman N-25 Motorway (813 km): This strategic highway will link Karachi to Afghanistan via Khuzdar, Kalat, Quetta, and Chaman.

• Hyderabad–Sukkur Motorway: Rs15 billion has been allocated for this vital section of the north-south trade route.

• Thar Coal Rail Connectivity Project: Rs7 billion will support rail infrastructure for transporting lignite coal.

• Gidani Shipbreaking Yard Upgradation: Rs1.9 billion is set aside for modernisation and environmental improvements in the maritime sector.

The development plan aligns with the government’s “5Es” framework and the broader “Uraan Pakistan” vision, aiming to achieve key Sustainable Development Goals (SDGs) through targeted investments in economic and social infrastructure.