ISLAMABAD: The federal government will present the 2025-26 Budget on June 2 (Monday), allocating Rs921 billion for development projects, according to private newspaper report.
As per the report, the Ministry of Planning says this amount is much less than the Rs1,600 billion needed. They note that Rs700 billion is required to support projects funded by foreign donors, leaving little for other projects.
The government plans to hold meetings of the Annual Plan Coordination Committee (APCC) and National Economic Council (NEC) in late May 2025 to approve the budget and development plans.
At the launch of the Monthly Development Update, Planning Minister Ahsan Iqbal said the Ministry of Finance set a budget ceiling of Rs921 billion for next year’s Public Sector Development Programme (PSDP), while ministries and departments requested Rs2.9 trillion. He emphasized that Rs1,600 billion is needed for ongoing and new projects under the Uraan Pakistan Programme.
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The Priorities Committee estimated needs at nearly Rs3 trillion. Iqbal said the issue will be discussed with the Ministry of Finance. For the current year, the PSDP was reduced from Rs1,400 billion to Rs1,100 billion, with Rs900 billion authorized so far. About Rs750-800 billion is expected to be used by June 2025. In the first ten months, Rs448 billion was spent.
Iqbal also mentioned that 200 projects were removed from the PSDP. He highlighted issues with the Neelum Jhelum hydropower project, noting its CFO has a degree in Geography. For the Dasu project, an international consultant is reviewing cost increases, and results are pending.
Meanwhile, Prime Minister Shehbaz Sharif announced that the upcoming 2025-26 federal budget will focus on supporting ordinary citizens.
During a meeting on budget preparations, he stated that the government will use all available resources to ease the financial burdens of the poor and middle class. He instructed that the budget should prioritize sustainable growth through exports and support projects that boost industries and production.
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The budget will also emphasize job creation, agriculture, information technology, small and medium businesses, and housing, he added.
The prime minister stressed the importance of collaboration between the government and private sector for national development.
He highlighted public-private partnerships and youth training programs as key priorities. He also noted that recent power sector reforms are showing positive results, with lower electricity prices for industries expected to support industrial growth and production.
