Pakistan unveils Rs17tr five-year development plan

June 09, 2025 (MLN): The Government of Pakistan has set an ambitious development agenda under its Five-Year Plan, with a total outlay of Rs17 trillion.

This was stated by the Federal Minister for Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, while addressing the launch ceremony of the Monthly Development Update for June 2025, as per the press release issued.

“This five-year plan reflects our national resolve to make Pakistan economically self-reliant, socially inclusive, and globally competitive. Out of the total, Rs7tr will be contributed by the federal government, while Rs10tr will come from provincial governments,” the Minister stated.

He outlined the government’s long-term planning objectives under the URAAN Pakistan vision.

“By 2047, when Pakistan celebrates 100 years of independence, we aim to become a $3tr economy”, he added.

“This five-year development framework is a major leap towards that goal. For FY2025–26 alone, the total development outlay is Rs4.2tr — including Rs1tr allocated for the federal Public Sector Development Programme (PSDP),” said Ahsan Iqbal.

He stressed that the government’s priority is now on high-quality, results-oriented development. “We are investing in big-ticket infrastructure, inclusive human development, and technology-based innovation".

"Our model is not about just spending; it is about transforming Pakistan’s economy and institutions,” he said.

Speaking about strategic projects, the Minister highlighted major allocations including Rs33 billion for Diamer Bhasha Dam, Rs35bn for Mohmand Dam, Rs100bn for the N-25 Quetta-Karachi Highway, Rs25bn for the N-55 Indus Highway, and Rs15bn for the M-6 Sukkur-Hyderabad Motorway.

He said the government had also prioritized Rs10bn for Karachi’s K-IV Water Project, Rs9bn for Danish Schools, and Rs4.3bn for the PM Youth Skill Development Programme.

In the health sector, Rs1bn and Rs800 million have been allocated for the treatment of Hepatitis C and Diabetes respectively.

The Minister proudly shared that the number of federal development projects has been brought down from 1,071 to 800, removing 367 low-priority or dormant projects with an estimated cost of Rs2,730bn.

“We are eliminating inefficiencies and channeling resources where they can truly change lives. Our ongoing federal portfolio now stands at Rs12.8tr, with a throw-forward of Rs8.5tr,” he added.

Ahsan Iqbal also outlined the establishment of three new National Centres — in Nanotechnology, Quantum Computing, and New Manufacturing — to prepare Pakistan for the fourth industrial revolution.

“We are laying the foundations for ‘Quantum Valley’ — a national hub of research, innovation, and economic modernization,” he stated.

The Minister said that inflation dropped to 3.5% in May 2025 from 11.8% a year ago, showing that the government’s economic management is on the right track.

“Our external sector has stabilized, with a current account surplus of $1.9bn and a 31% increase in remittances, reaching $31.2bn. This shows growing trust in Pakistan’s direction,” he said.

He also shared that the fiscal deficit has been reduced from 3.7% to 2.6% of GDP. In April 2025 alone, Rs5.4bn were saved by removing non-essential project components.

“This is the difference between political slogans and real economic stewardship,” he remarked.

The Minister added that 27 projects were either approved or recommended by the Planning Ministry in May 2025 alone — with the potential to generate over 105,000 jobs.

“We have authorized 95% of this year’s PSDP already. Out of 240 PSDP projects, 210 have been reviewed, 18 mega projects monitored, and four formally evaluated. This shows our commitment to performance-based governance,” he said.

Regarding development cooperation, he shared that the Ministry engaged with the ADB, AIIB, and the World Bank in May to align development goals with climate resilience and infrastructure investments.

A high-level workshop was also held on May 16 with 13 development partners to reaffirm Pakistan’s reform agenda. Addressing concerns from Khyber Pakhtunkhwa, he clarified: “The federal government has not stopped grants for the merged districts. In fact, Rs23bn was released recently”.

“A joint monitoring mechanism has been agreed with the KP government, and future disbursements will be made quarterly.” He reiterated that all provinces are treated equally without political bias”, he noted.

Concluding his remarks, Ahsan Iqbal said, “URAAN Pakistan is our roadmap to progress. This five-year plan is not just a budget — it is a commitment to future generations. With unity, planning, and determination, we will build a stronger, prosperous, and inclusive Pakistan.”