Govt Proposes Higher Development Spending on Water, Education and Health in FY2026-27
The federal government has proposed increased development funding for water, education, and health sectors in the upcoming fiscal year, reflecting its focus on strengthening essential public services and infrastructure.
According to proposed allocations under the Public Sector Development Programme (PSDP) 2026-27, the water sector is expected to receive Rs. 140.4 billion, compared to Rs. 82.2 billion in the revised budget for the current fiscal year. The additional funding is intended to support water management, irrigation systems, and infrastructure projects aimed at improving long-term water security.
Education has also been earmarked for increased funding. The proposed allocation for education and higher education projects, including those managed through the Higher Education Commission (HEC), has been raised to Rs. 78.5 billion from Rs. 52.6 billion in the current fiscal year.
Similarly, health and nutrition projects are proposed to receive Rs. 24.3 billion, up from the revised allocation of Rs. 14 billion. The additional resources are expected to support healthcare facilities, public health initiatives, and improvements in service delivery.
Infrastructure development remains the largest component of the proposed PSDP, with Rs. 729.9 billion allocated for infrastructure-related projects. Transport, communications, water, and energy projects continue to form a major part of the government’s development strategy.
The overall federal PSDP for FY2026-27 has been proposed at Rs. 1.126 trillion. Officials say available resources will be directed toward priority projects that contribute to economic growth, public welfare, and sustainable development while ensuring the efficient use of development funds.
The proposed allocations will be reviewed as part of the federal budget process before receiving final approval.
