Pakistan PSDP budget for 2026-27 may rise by Rs200 billion to Rs1.326 trillion. This might happen after virtual talks with the International Monetary Fund.
The proposed increase would lift the federal government’s development budget from Rs1.126 trillion to Rs1.326 trillion. Earlier reports said the Finance Ministry had set a ceiling of Rs1.126 trillion for the Public Sector Development Programme. This would be for the next fiscal year.
The federal government created fiscal space to accommodate the extra Rs200 billion. They said allocations for Sindh and Sustainable Development Goals initiatives were also raised under the revised PSDP layout.
The development followed budget talks between the federal government and the Pakistan Peoples Party. A PPP delegation comprising Naveed Qamar and Sherry Rehman met Minister for Planning, Development and Special Initiatives Ahsan Iqbal. They discussed PSDP allocations and new projects.
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The PPP raised concerns over the allocation and utilisation of development funds. Ahsan Iqbal assured the party that its concerns would be addressed before the formal budget presentation.
The federal budget 2026-27 is now likely to be presented on June 10 or June 12, rather than June 5, according to the report. The National Economic Council meeting scheduled for June 3 was also postponed. This change was linked to the Gilgit-Baltistan regional election.
