ISLAMABAD: The provinces have proposed a combined development outlay of Rs3.138 trillion for fiscal year 2026-27, reflecting an increase of Rs76 billion over the current year’s allocation, with Rs660 billion expected from foreign assistance and Rs2.478 trillion to be financed through domestic resources.
The provinces had budgeted a combined development outlay of Rs3.062 trillion for outgoing fiscal year 2025-26, including Rs658 billion in foreign assistance and Rs2.404 trillion from local resources.
The provinces have raised their combined development budget by Rs76 billion to Rs3.138 trillion for fiscal year 2026-27, up from Rs3.062 trillion in the current fiscal year 2025-26.
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According to documents available with Business Recorder, Punjab leads with a proposed allocation of Rs1.45 trillion, followed by Sindh with Rs816 billion, Khyber Pakhtunkhwa with Rs564 billion, and Balochistan with Rs308 billion.
Budget documents show that the Punjab government has proposed a development budget of Rs1.45 trillion for fiscal year 2026-27, including Rs1.306 trillion from local resources and Rs144 billion in foreign assistance. The Sindh government has proposed Rs816 billion, comprising Rs296 billion in foreign assistance and Rs520 billion from local resources.
Khyber Pakhtunkhwa has proposed Rs564 billion for its development programme, including Rs187 billion in foreign assistance and Rs377 billion from local resources under the Public Sector Development Programme (PSDP) 2026-27. Balochistan has proposed a development outlay of Rs308 billion, including Rs33 billion in foreign assistance and Rs275 billion from local resources.
Punjab has increased its development budget by Rs95 billion for fiscal year 2026-27 compared to the current fiscal year. Sindh has reduced its development budget by Rs29 billion, while Khyber Pakhtunkhwa has increased its allocation by Rs63 billion. In contrast, Balochistan has cut its development budget by Rs53 billion compared to fiscal year 2025-26.
The provincial governments have submitted their proposed development budgets to the federal government for incorporation into the budget framework for fiscal year 2026-27.
Copyright Business Recorder, 2026
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