The federal government’s proposed budget for 2025–2026 is Rs1 trillion for development projects.

With a proposed national development expenditure of over Rs4 trillion, including Rs1 trillion designated under the federal Public Sector Development Programme (PSDP), the Annual Plan Coordination Committee (APCC) is scheduled to meet today (Monday) to finalise the nation’s development priorities for the upcoming fiscal year 2025–2026.

The high-level meeting, which will be chaired by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, will bring together representatives from federal ministries, provincial governments, and pertinent departments to examine and approve the proposed development allocations prior to the federal budget.

Initial projections indicate that the federal government will spend Rs1,000 billion under the PSDP in the upcoming fiscal year, with a large portion of the money going to the power, education, water resources, and infrastructure sectors. It is anticipated that the whole development expenditure, including provincial allocations, will surpass Rs4,000 billion.

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In keeping with its ongoing focus on the construction of road infrastructure, the federal government is thinking of giving the National Highway Authority (NHA) the greatest share of all sectors, Rs229 billion.

In accordance with the government’s plan to lessen the effects of climate change and improve agricultural sustainability, a total of Rs140 billion is being proposed for water resources projects.

While Rs50 billion has been recommended for higher education projects under the Higher Education Commission (HEC), the Power Division is expected to receive Rs105 billion, which will be used to upgrade transmission lines and increase access to power.

In the meantime, the Ministry of National Food Security and Research is proposing a small allocation of Rs4 billion for development initiatives.

Additional sectoral allocations being considered are Rs1.5 billion for inter-provincial coordination projects, Rs3.5 billion for maritime affairs, and Rs3 billion each for the information and industries and production divisions.

Before being presented to the National Economic Council (NEC), which is anticipated to meet next week under the prime minister’s chairmanship, the ideas will be adjusted in light of feedback from the APCC meeting, according to officials familiar with the situation.

The development chapter of the federal budget for FY2025-26, which is expected to be released in mid-June, will be heavily influenced by the APCC’s recommendations.