Highlights of Budget 2025-26

June 10, 2025 (MLN): Federal Minister for Finance and Revenue Muhammad Aurangzeb is delivering the budget speech for the financial year 2025-26 in the federal cabinet session.

"It is a great honor for me to present the budget for the financial year 26-2025 before this honorable house. This mixed government is the second budget and I am led by Prime Minister Mian Muhammad Shahbaz Sharif Sahib, especially Mian Muhammad Nawaz Sharif, Bilawal Bhutto Zardari Sahib, Khalid Maqbool Siddiqui Sahib, Chaudhry Shujaat Hussain Sahib, Abdul Alam Khan and Abdul Alam Khan," he stated.

"I have demonstrated extraordinary unity, determination and courage. Our political leadership against Indian aggression, the unseen people of Pakistan and the unseen people of Pakistan, will always be remembered in the golden and solidarity of history," he added. 

"In addition to a wonderful military success, this success was a manifestation of the collective consciousness, national dignity and honor of the entire nation. I congratulate the military and political leadership of Pakistan here," he also noted. 

Our forces responded effectively and vigorously to the enemy with their professionalism, courage and passion, which not only made the defense of our borders unacceptable but also increased Pakistan's dignity in the international community. This great achievement posted the message that the Pakistani nation is united in every trial and leads to a wall to defend the motherland.

Using this national commitment and solidarity, our focus is now on the pursuit of economic stability, development and prosperity. With the sincerity and enthusiasm we have built national security on a strong basis, we have to strengthen our economy and ensure the welfare of the people, he said. 

He added that the government has successfully set the journey of economic recovery, reform and development with the spirit of national unity and commitment over the past one year and has not only strengthened the economy but also strengthened the economy by combining economic reforms, financial discipline, and development planning.

The government's priority is the formation of an economy that gives every class of development and paves the way for lasting development by ensuring the protection of the environment and resources.

Last year, we took several important steps for the improvement of the economy, which resulted in a significant improvement in financial discipline, and we have many successes, some of which I would like to mention. In them: 

A primary surplus equivalent to 2.4% of GDP has been achieved. Inflation has seen a significant reduction to 4.7%, a remarkable improvement considering it had surged to 29.2% just two years ago.

The current account is expected to post a surplus of $1.5 billion this year, compared to a deficit of $1.7 billion last year. There has been stability in the value of the rupee.

Remittances have increased by 31% in the first ten months of the current fiscal year, reaching $31.2 billion. It is expected that remittances will reach $38 billion by the end of the fiscal year.

The State Bank's foreign exchange reserves have increased by $2 billion and are projected to reach $14 billion by year-end.

The government has to make tough decisions for economic improvement. The unseen people of Pakistan also  

Make several sacrifices that have positive results.

He said that Pakistan's economic stability and performance have been appreciated by international organisations.

Pakistan’s economic revival gains momentum as independent surveys and major global financial institutions highlight rising optimism and strong endorsements. 

Ipsos reported that consumer confidence reached a six-year high, and PwC noted CEO optimism soared to 83%. OICCI’s Business Confidence Index jumped from –5% to +11%, and Gallup highlighted a 27.5% improvement in household financial outlook within just one quarter.

Meanwhile, the IMF praised Pakistan’s strong reform efforts, and the IFC committed $2 billion annually. Fitch Ratings upgraded Pakistan’s credit outlook from CCC+ to B–, and Moody’s revised its banking sector outlook to Positive, all confirming the country’s improving macroeconomic conditions.

Given the future improvement. Moodys have also identified the improvement in the economy.  

WB, ADB and IFC have not only expressed confidence in the future of the Pakistani economy but also announced that Pakistan to provide a large finance.

The government, led by Prime Minister Muhammad Shahbaz Sharif, has made several significant achievements. I would like to present the details of these accomplishments, along with key reforms, before the House.

The most important economic problem was the constant weakness of the revenue system. The proportion of GDP from Pakistan's tax was 10.0 %, which was insufficient to cover development costs and state administrative affairs.

In addition, according to FBR, the tax gap in Pakistan was estimated at Rs 5.5 trillion, which means we were missing more than half the potential tax.

This situation was unacceptable. Not only was it necessary to fill this gap, but it was inevitable to put the country on a sustainable development of proportion to GDP by 14 % tax, he added. 

FBR

It was clear like daylight that FBR is not just a part of this solution but the basis. It was not possible to strengthen the economy and achieve national goals without changing the FBR. That is why the FBR change project, headed by the Prime Minister, was launched.

It was not a traditional practice, but a plan was prepared through a detailed consultation under the direct supervision of the Prime Minister, which was approved in September 2024.

The basis of this project is on three pillars: People, processes and technology.

The axis of this project is a digital change. For the first time in Pakistan, a comprehensive digital integration between the economy and the tax system has been launched.

The axis of this project is a digital change. For the first time in Pakistan, a comprehensive digital integration between the economy and the tax system has been launched.

In the main steps taken under this project:

Digital production tracking was launched from the Chinese sector, which is now being extended to cement, beverages, fertilisers and textiles. The nationwide e-insights release documents the business-to-business transactions. 

Artificial intelligence-based audit selection system for sales and income tax, the integration of the point -of -cell system in all four provinces, E-billing to monitor the transport of items, Establishment of a faceless audit system to eliminate the cohesion in customs, Digital workflow and timely implementation alerts for officers and a new central control unit that provides the central insights of all data. 

In addition, the PRAL board has been restructured with the mandate of modern technology.

Along with technology, we are also investing in human resources development.

New recruits have been made to build the capacity of the auditors. Department of experts and auditors have been deployed to key units to that training and professional guidance.

Officers are being skilled out, law and digital skills through mini-administrator training programs. First, legal firms are being hired to pursue complex legal cases.

Most importantly, the officers are now subject to rewards, not just by seniors but also subject on their performance, professional behaviour and honesty.

He also informed the house that the preliminary results of the project have been very encouraging.

The Faceless Customs Audit system has made it easier for importers to comply with the law. Additionally, the number of filers and taxpayers doubled, resulting in a revenue increase from Rs45 billion to Rs105 billion. 

From July onwards, the KIM system will be converted to a simplified format with only 800 columns, requiring just seven (7) basic pieces of information. This easy and user-friendly return is being introduced specifically for salaried individuals and small businesses, eliminating the need for assistance from lawyers or tax experts.

Most importantly, for the first time in history, the IMF has formally taught the revenue of Rs 389 billion through the enforcement of the rules. This extraordinary confession is a clear evidence of the strength, expansion and reputation of our reform measures.

In other words, this is a sign of the IMF's trust in Pakistan's reform. Those who were beating the mini -budget, I would like to say in the service of these friends with great literature that no mini -budget came and no additional tax was imposed.

Many taxpayers try to avoid tax through cases. Due to the weak following these cases, the government has been postponed for a long time.

In addition, an ADR -related case in the courts was resolved through negotiations, which gave the national exchequer Rs 77 billion.

Energy Reforms

The power sector plays a vital role in economic development. Recognizing its importance for both industry and domestic consumers, the government has taken several bold steps to bring about reform and relief.

To support industrial growth and ensure affordability, electricity costs have been reduced by over 31%. For 18 million deserving and protected consumers, the reduction exceeds 50%. We also renegotiated agreements with Independent Power Producers (IPPs), which is expected to save the national exchequer over Rs3,000 billion. Moreover, over 3,000 MW of furnace oil-based power plants have been shut down to reduce environmental harm.

We understand that deep and structural reforms are necessary for sustained improvement in the power sector. Privatization of three distribution companies—Faisalabad, Gujranwala, and Islamabad—is halfway complete, with all key components of the privatization process finalized.

To improve efficiency, we restructured the National Transmission and Despatch Company (NTDC) into three separate companies. These new entities will focus on planning and implementing future power transmission projects, eliminating bottlenecks. They will be led by world-class professionals to ensure high standards of performance.

I am pleased to report that management of power distribution companies is now overseen by professional boards, free from political interference. This reform alone has resulted in a reduction of losses worth Rs140 billion in just nine months. Insha’Allah, we are committed to completely eliminating these losses over the next five years.

Legislation and regulations to establish an independent power market have been finalized and will be implemented in the next three months. For the first time in Pakistan’s history, building regulations based on energy-saving principles have been approved. Federal and provincial institutions have been directed to fully enforce these standards to ensure that all future construction projects are energy efficient.

To ensure affordable electricity, the government has prepared a comprehensive plan, already resulting in savings of over Rs4,000 billion. We have cancelled the addition of 9,000 MW of expensive power plants that were scheduled to join the national grid.

Additionally, all publicly owned generation companies (GENCOs) have been shut down, and their assets are being sold to remove the annual fiscal burden of over Rs7 billion on the treasury.

2024 Pakistan Offshore Exploration Bid Round

The launch of the 2024 Pakistan Offshore Exploration Bid Round, the first in over a decade, marks a significant revival of Exploration & Production (E&P) activities in the offshore sector. Multiple oil and gas discoveries have contributed to import substitution and enhanced energy security. E&P companies have committed to investing over $5 billion in future exploration ventures.

The government has also emphasized projects that aim to enhance the productivity of existing fields by integrating modern technologies.

Several policy reforms, including the Petroleum Policy 2012, amendments to the Tight Gas Policy, and competitive pricing mechanisms, have made Pakistan’s E&P sector more attractive and globally competitive.

In the refining and downstream segment, substantial momentum has been gained under the Pakistan Refining Policy 2023. This includes upgrades to Euro-V fuel standards and capacity expansion initiatives.

Moreover, steps toward deregulating fuel prices are designed to encourage competition and attract private investment.

The copper and gold reserves at Reko Diq in Chagai, Balochistan, represent one of the most valuable assets for Pakistan’s future. The feasibility study of the Reko Diq project was completed in January 2025, paving the way for long-term development.

The project’s estimated life is 37 years, during which it is expected to generate over USD 75 billion in cash flows for the country. Additionally, around 41,500 jobs will be created during the construction phase alone.

Beyond economic returns, the project promises significant socio-economic development through:

• Local procurement and employment opportunities
  
• Community development programs
  
• Strong environmental safeguards
  
• Substantial contributions through Corporate Social Responsibility (CSR)

This is not just a mining project; it is a game-changing initiative that will uplift local communities, improve livelihoods, and help secure Pakistan’s long-term economic prosperity.

The project is expected to generate $7 billion in taxes and $7.8 billion in royalties. Construction of transport infrastructure by road and rail from Reko Diq to Port Qasim and Gwadar is underway to facilitate exports. This project will be a game-changer for Pakistan's economy.

Business environment

The government is committed to creating a conducive business environment, encouraging investment and boosting exports.

The Ministry of Commerce has taken several important steps to develop a competitive, diversified and export-oriented domestic economy.

Tariff Reforms Package

The government is introducing a comprehensive Tariff Reforms Package with a clear vision to foster economic growth, support businesses, and boost exports through the rationalization of existing tariffs. The objective is to accelerate economic progress by enhancing export competitiveness and reducing the cost of doing business.

In line with the directives of Prime Minister Muhammad Shahbaz Sharif, the following key reforms have been incorporated into the National Tariff Policy 2025–30:

• Elimination of Additional Customs Duties (ACDs) over the next four years
  
• Phased removal of Regulatory Duties (RDs) within five years
  
• Sunsetting of the 5th Schedule of the Customs Act, 1969 within five years
  
• Simplification of the tariff structure to just four customs duty slabs: 0%, 5%, 10%, and 15%, with a maximum customs duty cap of 15%

These tariff reforms will be implemented in a phased manner so that the business can adjust with this change without any disruption and minimize the obstacles in their way. Almost all sectors of the economy will benefit from reforms, including pharmaceutical, IT and telecom, textile, engineering, etc.  

According to the World Bank, after the successful implementation of these reforms, Pakistan's average tariff will be the lowest in the conference and we will join the ranks of countries like Vietnam and Indonesia.

"We are confident that these reforms will yield positive results and they will play an important role in the country's economic development," he noted. 

Improvements in debt management  

Over the past two decades, Pakistan's economy has been heavily reliant on debt. However, improved financial management has helped reduce the debt burden relative to the size of the economy.

Two years ago, the Debt-to-GDP ratio stood at 74%, which has now declined to 70%, with further reduction targeted.

Key achievements in this regard include:

The successful launch of Pakistan’s first Debt Buyback Program, under which loans worth Rs1,000 billion were retired.

An active refinancing strategy, which saved more than Rs850 billion in interest payments.

The Average Time to Maturity (ATM) of loans increased by 66%, contributing to a more sustainable debt profile.

Our refinancing risk decreased, and financial stability increased. Debt products are being diversified to increase the investor base. In this regard, the Pakistan Stock Exchange has launched the Sukuk bond.

While launching more products is being considered. The first Panda Bond issuance has been completed, which aims to make Pakistan's access to Pakistan's largest and deepest Chinese capital market. 

SOEs

If government aid is provided in subsidies, grants and equity, this estimate exceeds one trillion rupees annually. This is why SOE reforms are very important for financial discipline.

The government has taken several important steps regarding SOES. An important pillar of SOEs reforms is divided into their various categories through which their future direction is determined by the Restructuring Privatisation. This categorization has been completed through a cabinet committee.

 Privatization

The government is pursuing a modern and dynamic privatization strategy to improve the performance of the public sector, reduce financial burden, and promote investment.

This strategy is focused on the transparent and effective privatization of unnecessary government institutions to promote competitiveness, performance and private investment in various sectors, especially in energy and financial sectors.

In the financial year 26-2025, we have a target to complete important transactions like PIA and Roosevelt Hotel, and advance policy and marble reforms for privatization of key assets such as Discos and Gencos.

Most importantly, we consider privatization not just a financial move, but a means of expanding and deepening Pakistan's capital markets.

"Our aim is to include government assets in the stock market, so that transparency in the market can be increased, investors are possible and promoting the participation of the people's economy," he added. 

Correcting the size of the federal government  

"We have initiated a move to make the federal government's institutional formation accurate, administrator and modern in accordance with the Prime Minister's vision, he informed.

This fundamental reform is based on the principle that the government puts the least burden on taxpayers to provide public facilities, in the government structure.

A conducive environment for modern ideas is available, and the government should not participate in business affairs but should lead the private sector to the country.  

So far, the cabinet has approved the rightsizing plans of ten ministries that are in the process of implementation.

Six divisions have been merged and three have been made.

45 companies and companies are being made private or closed. About forty thousand empty positions have been abolished. Rights sizing recommendations for the next ten ministries have been finalized, while suggestions regarding eight more ministries are under consideration.

Pension fixes

Pensions are a fundamental right of retired employees. However, over the past few decades, various executive orders altered the pension structure, significantly increasing the burden on the national exchequer.

To ensure long-term sustainability and reduce fiscal pressure, the government has introduced key reforms to the pension scheme, including:

• Discouraging premature retirements to promote longer service durations and reduce early pension claims.
  
• Indexing pension increases to the Consumer Price Index (CPI), ensuring fairness and linking adjustments to inflation.
  
• Limiting the pension benefit period for surviving spouses to 10 years after the death of the pensioner.
  
• Eliminating the option of receiving more than one pension, to avoid duplication and misuse.
  
• Offering a choice between pension and salary in cases of post-retirement re-employment, preventing double benefits.

 Climate change 

Pakistan ranks among the countries most affected by climate change, and mitigating its adverse effects is a major priority for the government. Addressing this challenge requires significant resources.

That is why, over the past sixteen months, the government has focused considerable attention on climate finance, achieving notable progress.

Under the World Bank and International Finance Corporation (IFC)'s Country Partnership Framework, Pakistan is expected to receive $40 billion in resources over the next ten years, with climate action identified as a core priority of this framework.

Similarly, after a year of rigorous efforts, the IMF approved $1.4 billion for Pakistan under its Resilience and Sustainability Facility (RSF).

Additionally, the Government of Pakistan issued its first Green Sukuk, which has mobilized domestic market resources for climate-related projects.

These initiatives will significantly enhance Pakistan’s ability to combat and adapt to the impacts of climate change.

BISP/ Social Protection 

Our government is committed to supporting the most vulnerable segments of society through a comprehensive and effective social protection system.

During the fiscal year 2024–25, the Benazir Income Support Program (BISP) played a significant role in shielding low-income families from economic hardships. A substantial amount of funds was allocated to this initiative.

In addition, financial assistance in the form of educational scholarships was provided to 6 million children. Under the BISP development program, 1.5 million pregnant women and their children received special cash transfers and nutritional support.

To further promote financial inclusion, 250,000 beneficiaries were trained in financial literacy during the year.

IT Sector

The IT sector has become a very important part of the domestic economy due to its export potential. Pakistan's services in terms of digital governance and cybersecurity have been acknowledged internationally.

Pakistan's growing ranking in the Global Cyber ​​Security Index 2024, UN E-Government Index and ICT Development Index is a testament to the development of the country's IT sector.

During the current financial year, Pakistan's ICT exports recorded an impressive increase. In the 10 months of the year, these exports reached $ 3.1 billion, which is 21.2% higher than the previous year.

This significant increase resulted in a government policy. The next financial year will also continue the journey of development in this sector. Over the next 5 years, ICT exports are expected to rise to $ 25 billion.

SMES and affordable accommodation

SMES are the backbone of our economy's prosperity, which is why the Prime Minister has paid special attention to the promotion of SMES. SMEDA has developed a three-year business plan for 27-2024, whose main components include increasing SME Financing, promoting exports, links between industries, women's business partnerships and the impact of climate change.  

A major success has been the SME Risk Sharing Scheme, which, by May 2025, facilitated financing for over 395,000 small and medium enterprises (SMEs), amounting to more than Rs 311 billion.

As a result, total SME financing rose from Rs 471 billion to Rs 641 billion, while the number of beneficiaries increased from 114,000 to 160,000.

The government remains committed to expanding SME financing to Rs 1,100 billion by 2028, with a target of benefiting 7.5 million businesses.

The State Bank of Pakistan is active in improving the SME finance system with banks, art companies and other stakeholders, and recently issued regulations on SME finance for public consultation.

The purpose of these regulations is to give banks more flexibility, simplify the process of debt acquisition, promote the use of technology and soften the terms of guarantees.

Schemes of Social and Economic Development

He also shared that the Prime Minister wants to promote the schemes of social and economic development, which will have a profound impact on the welfare of the people. The low-income segment of society will be provided with cheap loans for the purchase or construction of houses.

The scheme will advance economic activities in many fields and create new jobs for the skilled. Details of the project will be announced soon by the State Bank of Pakistan.  

Overseas Pakistanis 

Pakistanis abroad are an important asset of ours, as I have mentioned earlier, our abroad have sent $ 31.2 billion in remittances to Pakistan in the first 10 months of the current fiscal year, which is 31 % higher than the previous year.

It is worth mentioning here that the volume of remittances has increased by $ 10 billion in the last two years, for which we are sincerely grateful to our overseas Pakistani siblings, he noted. 

This has improved the current account. Our government will provide more facilities to Pakistanis abroad so that they can continue to play their active role in national development.

In the light of the orders of the Prime Minister of Pakistan, several steps are being taken for Pakistanis abroad. I would like to mention some of them. As special courts are being set up, an online system will be introduced to register cases and collect evidence and to prevent false cases.

Changes will be made to the Procedure Laws. A quota is being determined for the children of Pakistanis living abroad in chartered universities and medical colleges from the federal government, and scholarships will be provided for skill training.

Additionally, 15 individuals sending the most remittances through the State Bank will be awarded civil awards every year on August 14.

Agriculture

Agriculture is the backbone of the national economy. The contribution of agriculture to the national economy is approximately 24 percent, which highlights its importance.

Agriculture is a provincial subject; however, considering the significance of this sector, the Prime Minister has formed a national committee that will consult purposefully with the provinces to promote agriculture.

Furthermore, there has been a significant increase in the provision of loans to the agricultural sector, with the amount rising from 1,785 billion rupees in the first 10 months of the previous fiscal year to 2,066 billion rupees in the first 10 months of this fiscal year.

Several new measures have been taken to provide loans to the agricultural sector, especially to small farmers. A new Clean Financing Facility Programme is being launched under which banks will provide loans of up to 100,000 rupees to small farmers without any collateral.

This amount will be transferred to farmers' E-Wallets through a digital system. The government will provide banks with a portfolio on loans given to each small farmer.

It will provide 10% first loss risk coverage. This facility will be provided in areas where financing is not available. Approximately seven and a half lakh farmers will benefit from this scheme.  

The Government of Pakistan has taken significant steps to improve the seed sector, including the establishment of the National Seed Development and Regulatory Authority to ensure the provision of quality seeds by climate changes.

The Ministry of National Food Security and Research has initiated the process of organizing the seed system on digital foundations, which includes company registration, renewal, seed certification, compliance, and enforcement. Measures are also being taken to promote research and investment in the private sector.

The National Seed Policy 2025 and the National Agricultural Biotechnology Policy 2025 are in the final stages of approval, while the Plant Breeders Rights Act is also being prioritised to protect innovation and promote research and development.

Coordinated efforts have also been made for the revival of the cotton crop, which is the backbone of Pakistan's economy and textile industry. Although there has been a decline in cotton production in recent years, positive progress was observed in 2023, and production was affected in 2024 due to seasonal issues despite government efforts.

The government will make every possible effort to restore confidence in cotton cultivation. I will detail the projects included in the development budget for agriculture later.

Special Investment Facilitation Council  (SIFC)

The Special Investment Facilitation Council has initiated investment in Pakistan.The SIFC has achieved a prominent position as a central platform for enhancing growth and the business environment.

Under this council, over 100 strategic greenfield and brownfield projects have been rapidly advanced across various sectors, including energy, minerals, agricultural business, IT, fintech, infrastructure, human resource development, and tourism, resulting in a significant increase in foreign direct investment in the fiscal year 2024-2025. T

he SIFC has also played a crucial role in privatization, public-private partnerships, and the promotion of the private sector.

Due to improvements in inter-provincial and inter-ministerial connections and the elimination of unnecessary regulatory obstacles, the SIFC has restored investor confidence, improved the transport and logistics system, and laid a strong foundation for the agenda of industrial development for exports in the fiscal year 2025-2026.

This budget marks the beginning of a strategy designed for a competitive economy that will boost exports, increase foreign exchange reserves to avoid payment imbalances, and promote economic productivity.

In summary, our budget strategy is to bring about fundamental changes to alter the DNA of the economy.

Key highlights of the Budget for FY2025-26:

The economic growth rate for the fiscal year 2025-2026 is expected to remain at 4.2%. The average inflation rate is anticipated to be 7.5%. The budget deficit will be 3.9% of GDP, while the primary surplus will be 2.4% of GDP.

The estimated revenue of the FBR is fourteen thousand one hundred thirty-one (14,131) billion.

The economic growth rate for the fiscal year 2025-2026 is expected to remain at 4.2%. The average inflation rate is anticipated to be 7.5%.

The budget deficit will be 3.9% of GDP, while the primary surplus will be 2.4% of GDP. The estimated revenue of the FBR is Rs14,131 billion which is 18.7% more than the current fiscal year.

The share of the provinces in federal revenues will be Rs8,206 billion. The target for federal non-tax revenue is Rs5,147 billion. The net income of the federal government will be Rs11,072 billion.

The total estimated expenditures of the federal government are Rs17,573 billion, of which Rs8,207 will be allocated for your payment.

The estimated current expenditures of the federal government are Rs16,286 billion.

A budget of Rs1,000 billion has been allocated for the federal public sector development program.

National defense is the government's top priority. For this national duty, Rs2,550 billion will be provided.

For civil administration expenditures, Rs971 billion is being allocated Rs1,055 billion has been allocated for pension expenditures.

An amount of Rs1,186 billion is being allocated as subsidies for electricity and other sectors. An allocation of Rs1,928 billion is being made under grants are for BISP, Azad Jammu and Kashmir, Gilgit-Baltistan, and the newly merged districts of Khyber Pakhtunkhwa, etc.  

The government intends to expand the coverage of BISP's Magship initiatives. To implement this, the sponsorship program will be extended to one crore families.

The educational scholarship program will be further expanded to benefit approximately one million children. In the next fiscal year, a proposal has been made to allocate Rs716 billion for BISP, which is 21% more than the previous year.  

For these expenses, it is proposed to allocate Rs140 billion for Azad Jammu and Kashmir, Rs80 billion for Gilgit-Baltistan, Rs80 billion for the merged districts of Khyber Pakhtunkhwa, and Rs18 billion for Balochistan.  

Public Sector Development Programme (PSDP) 

The Federal Development Program (PSDP) is a key mechanism for mobilising domestic and foreign financial resources aimed at promoting development in various sectors of the economy. 

Considering the current financial situation, the National Economic Council (NEC) has proposed national development expenditures of Rs4,224 billion for the fiscal year 2025-26.

An approval has been granted, which includes Rs1,000 billion for the Federal PSDP and Rs2,869 billion for Provincial ADPs, in addition to an investment of Rs355 billion rupees from SOEs' own resources.

IHe also informed the House that the focus of the Federal PSDP 26-2025 is on basic infrastructure projects, on which more than 60% of resources are being allocated to benefit the entire country.

Meanwhile, the priority of Provincial ADPs is social sectors, for which more than 60% of funds have been allocated. 

This trend is clear evidence of the implementation of the distribution of responsibilities following the 18th amendment in the Constitution. Furthermore, efforts have been made to align ongoing and new initiatives with national projects such as the Pakistan Airlift and the Es 5-based National Economic Transformation Plan.

It is important to mention the key sectoral highlights of the Federal PSDP 26-2025. First, the transportation infrastructure sector (roads, railways, maritime, and air transport).

Transportation infrastructure is one of the key drivers of economic development and prosperity under the SES framework, so that the goals of Pakistan Airlift and the SDGs can be achieved.

Considering the importance of this sector, the federal government has allocated the largest amount of Rs328) billion for transportation infrastructure projects out of the total Rs1,000 billion of PSDP 26-2025.

Special attention has been focused on the road sector. At the special instruction of the Prime Minister, the 813-kilometer long road from Karachi to Balochistan has been highlighted.

The 25-N highway, which runs from Karachi to Bela, Khuzdar, Qalat, Quetta, and continues to Afghanistan, has been allocated one hundred (100) billion rupees for its construction. 

To complete the north-south motorway network and for connectivity purposes, Rs15 billion have been allocated for the Sukkur-Hyderabad motorway construction. Rs7 billion have been allocated for the timely completion of the Thar Coal Rail Connectivity Project.

In the maritime sector, the upgrade project for Gadani shipbreaking facilities has also been given importance, with 1.9 billion rupees allocated for it. The continuity of funding from PSDP for Gwadar port infrastructure projects has been maintained.

Financial assistance has also continued to fill the gap for provincial transport projects, with significant funds allocated for provincial projects.

Management of Water Resources

Recently, after the India-Pakistan war, India has threatened to stop Pakistan's water. India is trying to use water as a weapon. He made it clear that water is essential for Pakistan's survival, and any obstruction in this regard will not be tolerated.

A strong counter to India's malicious intentions will be made. However, it is also necessary that we increase our water reservoirs on a war footing.

Despite limited resources, the government will ensure the implementation of water reservoir projects. A detailed strategy in this regard will be announced soon.

Pakistan is facing challenges such as Indian water aggression, water scarcity, food security, prevention of flooding from mountain streams, flood prevention measures, and issues related to climate change.

To address these issues, the Government of Pakistan has set various targets under the National Water Policy 2018, keeping in mind a comprehensive water resource management approach, which includes an increase of 10 million acre-feet in water storage, a 33% reduction in water wastage, a 30% increase in water use efficiency, and real-time discharge monitoring of the Indus Basin irrigation system.