Transport and Communications Sector Proposed to Receive Largest Share of FY2026-27 Development Budget
The federal government has proposed allocating the largest portion of its development budget to the transport and communications sector in the upcoming fiscal year, reflecting a continued focus on improving connectivity and infrastructure across the country.
Under the proposed Public Sector Development Programme (PSDP) for FY2026-27, total federal development spending has been set at Rs. 1.126 trillion. Of this amount, the transport and communications sector is expected to receive Rs. 408.9 billion, making it the highest-funded sector in the development portfolio.
According to Planning Commission sources, infrastructure-related projects are proposed to receive Rs. 729.9 billion, accounting for nearly 65 percent of the total PSDP allocation. Transport and communications projects represent the largest component of this investment, followed by water resources and energy sector initiatives.
The proposed allocation includes significant funding for the National Highway Authority (NHA), which is expected to receive Rs. 264 billion for the construction, rehabilitation, and completion of road infrastructure projects across the country.
Key projects under consideration include sections of the N-25 highway connecting Karachi, Quetta, and Chaman, as well as the Hyderabad-Sukkur Motorway, Khyber Pass Economic Corridor, Karakoram Highway improvement works, and several regional road projects in Balochistan, Khyber Pakhtunkhwa, and Gilgit-Baltistan.
In addition to infrastructure development, the government has proposed Rs. 187.2 billion for social sector initiatives. These include allocations for education, higher education, health, nutrition, and programs supporting sustainable development goals.
Special regions, including Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts, are also expected to receive dedicated development funding under the proposed plan.
Officials noted that the development budget has been prepared within available fiscal resources, despite funding requests from ministries and departments that exceeded the proposed allocation ceiling. The Planning Commission has emphasized the importance of prioritizing ongoing projects and ensuring efficient utilization of development funds to support long-term economic growth and public service delivery.
