Transport receives largest PSDP share

June 12, 2026 (MLN): The federal government has allocated Rs365 billion to the transport sector under the Public Sector Development Programme (PSDP) for fiscal year 2026-27

This makes it the largest recipient of development funding as part of efforts to strengthen connectivity, boost trade and support economic growth.

Presenting the federal budget in the National Assembly on Friday, Muhammad Aurangzeb said the allocation showcases the government's commitment to expanding and modernising the country's transport infrastructure, including highways, railways and ports.

Among the major projects, the government has earmarked Rs100 billion for the dualisation of the N-25 Highway, also known as the Pakistan Expressway, a key route in Balochistan connecting Karachi with Chaman.

The finance minister also announced an allocation of Rs30 billion for the Sukkur-Hyderabad Motorway (M-6), a project considered crucial for completing Pakistan’s north-south motorway corridor.

In the railway sector, Muhammad Aurangzeb said work on the Karachi-Rohri section of the ML-1 railway project is scheduled to begin during the next fiscal year with financing support from the Asian Development Bank.

The government has allocated Rs25 billion for the initiative.

Additionally, Rs2 billion has been set aside for the Thar Coal Connectivity Project, which aims to improve transportation links for indigenous energy resources and strengthen integration with the national transport network.

The minister further informed lawmakers that more than Rs93 billion would be spent on the development of Gwadar Port infrastructure and a range of transport projects across all four provinces.

According to Finance minister Aurangzeb, these investments are expected to enhance regional connectivity, improve logistics and freight movement, and contribute to sustainable economic development across the country.

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