ISLAMABAD: Following tensions in the Gulf region between the US and Iran, the government has further slashed the development budget and reduced it by Rs172.8 billion for the current fiscal year.
The Ministry of Finance has officially communicated to the Planning Ministry that the allocation of Public Sector Development Program (PSDP) was further revised downwards from Rs1,000 billion to Rs837.16 billion for the current fiscal year 2025-26, ending on June 30, 2026. When contacted, Minister for Planning and Development Ahsan Iqbal confirmed that the development budget in the shape of PSDP was revised downwards to Rs837.16 billion from the earlier allocation of Rs900 billion. Initially, the federal government had slashed the PSDP from Rs1,000 billion to Rs900 billion, making a reduction of Rs100 billion. Now, in the second communication sent by the Ministry of Finance to the Planning Ministry, the PSDP funding was further reduced from Rs900 billion to Rs837.16 billion for 2025-26.
According to the official communication sent out by the Ministry of Finance to the Planning Commission, the revised allocation of Board of Investment stood at Rs915.2 million, Cabinet Division from Rs75 billion to Rs63.2 billion under SDGs Achievement Program for parliamentarians, Climate Change and Environmental Coordination Division Rs2.3 billion, Commerce Division Rs50 million, Communication Division other than NHA Rs79.4 million, Defence Division Rs9.02 billion, Defence Production Division Rs1.395 billion, Establishment Division Rs495.359 million, Federal Education and Professional Training Rs26.6 billion, Finance Division Rs580.8 million, Provinces and Special Areas Rs201.283 billion (out of which Special Areas AJK and GB Rs67.975 billion, AJK Rs37.3 billion ADP Rs32 billion), PM Package Rs1 billion (projects Rs4.3 billion), Gilgit-Baltistan Rs30.671 billion (ADP Rs22 billion, projects Rs8.671 billion), for merged districts of KP Rs54.185 billion, AIP Rs25.817 billion, ADPs Rs28 billion.
The government made revised allocation of Rs34.9 billion for Higher Education Commission (HEC), Rs13.446 billion for Housing and Works, Rs23 million for Human Rights Division, Rs1.576 billion for Industries and Production Division, Rs3.334 billion for Ministry of Information & Broadcasting, Rs18.4 billion for Ministry of Information Technology, Rs929 million for Inter Provincial Coordination, Rs11.5 billion for Interior Division, Rs1.448 billion for Kashmir Affairs and GB, Rs1.583 billion for Law and Justice Division, Rs2.6 billion for Maritime Affairs, Rs11.6 billion for National Health Services, Regulation & Coordination, Rs198 million for National Heritage and Culture Division, Rs761 million for Pakistan Atomic Energy Commission, Rs718 million for Petroleum Division, Rs20.4 billion for Planning Commission, Rs18.558 billion for Railways Division, Rs400 million for Religious Affairs Division, Rs12.213 billion for Revenue Division, Rs4.486 billion for SUPARCO, Rs3.396 billion for Science and Technology, Rs503 million for Special Investment Facilitation Council (SIFC) and Rs106.6 billion for Water Resource Division.
