Govt allocates Rs1tr for PSDP FY26, nearly Rs3tr for ADPs

June 10, 2025 (MLN): The federal government has allocated Rs1 trillion for the Public Sector Development Programme (PSDP) 2025-26 during the budget 2025-26 announcement, alongside Rs2.869tr for Provincial Annual Development Plans (ADPs) and Rs355 billion from State-Owned Enterprises' (SOEs) own resources.

Over 60% of the PSDP has been earmarked for basic infrastructure projects aimed at nationwide development, while the ADPs prioritize social sectors.

Transportation infrastructure has received the highest allocation under the PSDP, with Rs328 billion dedicated to roads, railways, maritime, and air transport.

The 813-kilometer Karachi-Balochistan road project has been highlighted under the Prime Minister's special directive. Additionally, Rs100bn has been allocated for the construction of the 25-N highway, connecting Karachi to Afghanistan via Bela, Khuzdar, Qalat, and Quetta.

The Sukkur-Hyderabad motorway will receive Rs15bn, while Rs7bn has been allocated for the Thar Coal Rail Connectivity Project.

In the maritime sector, Rs1.9bn has been allocated for the upgrade of Gadani shipbreaking facilities, with continued funding for Gwadar port infrastructure.

In the education sector, Rs9.8bn has been allocated for establishing 11 new knowledge schools across Azad Jammu and Kashmir, Gilgit-Baltistan, Balochistan, and Islamabad.

The government also announced the establishment of Knowledge University Islamabad, with plans for modern facilities and free higher education for underprivileged students.

A total of Rs18.5bn has been set aside for early childhood education centers, computer labs, and the National Institute of Excellence.

Furthermore, Rs3bn will be used for reconstructing 1,800 school units under a cost-sharing basis.

Under the Prime Minister’s Youth Skill Development Program, Rs4.3bn has been allocated to train 161,500 youth, including 56,000 in IT, 64,000 in industrial trades, and 49,000 in traditional trades, with special focus on newly merged districts of FATA and urban Sindh.

The health sector will see a significant boost, with Rs14.3bn allocated for 21 major projects.

This includes Rs4bn for the Jinnah Medical Complex in Islamabad, Rs1bn for nationwide Hepatitis C elimination, Rs800 million for diabetes control, Rs1.7bn for a new cancer hospital in Islamabad, and Rs900m each for medical equipment and a new stroke intervention center at PIMS.

To ensure balanced regional development, the PSDP 2025-26 allocates Rs164bn for Azad Jammu and Kashmir, Gilgit-Baltistan, and the merged districts of Khyber Pakhtunkhwa — with Rs48bn each for AJK and GB, and Rs68bn for the merged districts.

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