The APCC’s recommendations will play a crucial role in shaping the development chapter of the federal budget for FY2025-26
Budget 2025-26: Govt Proposes Rs1tr for Development Projects. The Annual Plan Coordination Committee (APCC) is set to meet today (Monday) to finalise the country’s development priorities for the upcoming financial year 2025-26, with a proposed national development outlay exceeding Rs4 trillion, including Rs1 trillion earmarked under the federal Public Sector Development Programme (PSDP).
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal will chair the high-level meeting, which will bring together officials from federal ministries, provincial governments, and relevant departments to review and approve the proposed development allocations ahead of the federal budget.
According to initial estimates, the federal government plans to allocate Rs1,000 billion under the PSDP for the next fiscal year, with significant funding proposed for infrastructure, water resources, power, and education sectors. The total development outlay — including allocations by the provinces — is expected to cross Rs4,000 billion. The federal government is considering allocating Rs229 billion to the National Highway Authority (NHA), the largest share among all sectors, reflecting its continued emphasis on road infrastructure development.
A sum of Rs140 billion is proposed for projects related to water resources, in line with the government’s strategy to mitigate climate impacts and strengthen agricultural sustainability.
The Power Division is likely to receive Rs105 billion, aimed at improving transmission systems and expanding access to electricity, while Rs50 billion has been proposed for higher education projects under the Higher Education Commission (HEC).
Meanwhile, a modest allocation of Rs4 billion is proposed for development projects under the Ministry of National Food Security and Research.
Other sectoral allocations under consideration include Rs3.5 billion for maritime affairs, Rs3 billion each for the information and the industries and production divisions, and Rs1.5 billion for inter-provincial coordination initiatives.
Officials familiar with the matter said the proposals will be fine-tuned in light of input from the APCC meeting before being presented to the National Economic Council (NEC), which is expected to meet next week under the chairmanship of the prime minister.
The APCC’s recommendations will play a crucial role in shaping the development chapter of the federal budget for FY2025-26, which is scheduled to be unveiled in mid-June.
