ISLAMABAD (Dunya News) – Pakistan is expected to allocate around Rs1,126 billion for development projects in the upcoming federal budget 2026–27, according to documents of the planning commission.
Minister for Planning and Development Ahsan Iqbal reviewed the documents during an annual meeting of the coordination committee.
The Planning Commission’s documents suggested that key allocations under consideration include Rs135 billion for energy projects, Rs140 billion for water resources, Rs408 billion for transport and communications, and Rs187 billion for the social sector.
For the next fiscal year, a GDP growth target of 4 percent has also been proposed. The plan includes targets of 3.6 percent growth for major crops, 5.8 percent for manufacturing, and 4 percent for overall industrial growth.
The documents noted that GDP growth for the current fiscal year was recorded at 3.7 percent, falling short of its target. Large-scale manufacturing growth is projected at 4.5 percent.
Following the meeting, Ahsan Iqbal told reporters that nearly Rs10,000 billion would be required to complete ongoing development projects across the country, stressing the need to increase available resources for development spending.
He said development spending had remained stagnant over the past eight years, affecting several projects. According to him, development investment had declined from 2.6 percent of GDP to just 0.6 percent, while post-2018 allocations saw a continued downward trend.
The minister added that around Rs5 trillion worth of projects are currently under implementation, while proposals worth Rs720 billion for new projects are also under consideration.
He said timely completion of ongoing projects remains a top government priority, while a large portion of the federal budget is currently consumed by debt servicing, limiting fiscal space for development.