ISLAMABAD – Budget 2026–27 introduces record development allocations across key sectors, with major funding directed toward roads, railways and energy expansion. The spending plan focuses on strengthening national infrastructure, improving connectivity and boosting power generation through large-scale public projects.
Sharif led government comes up with ambitious development agenda in Budget 2026–27, earmarking billions of rupees for major highways, rail networks, energy projects, education initiatives and healthcare programmes aimed at accelerating growth across the country.
The largest allocation of Rs100 billion has been proposed for the N-25 Quetta Highway project amid renewed focus on improving connectivity in Balochistan and strengthening regional trade routes.
Another Rs30 billion has been allocated for the long-awaited Sukkur-Hyderabad Motorway, while the ML-1 railway project, considered a key component of Pakistan’s rail modernisation plan, is set to receive Rs25 billion.
Sindh also secured major infrastructure funding under the new budget. Sindh Coastal Highway has been allocated Rs25 billion, while the Mehran Highway project will receive Rs21 billion to improve transport links within the province. In Karachi, the government has earmarked Rs10 billion for the Bulk Water Supply project amid growing concerns over water shortages in the country’s largest city.
The energy sector emerged as another major priority in the federal spending plan. The government has proposed Rs26 billion for the Mohmand Dam Hydropower Project and Rs21 billion for the Dasu Hydropower Project in an effort to boost electricity generation and tackle the ongoing energy crisis.
Education and healthcare also received fresh allocations under the budget. A total of Rs22 billion has been set aside for the construction of Daanish Schools nationwide, reflecting the government’s emphasis on expanding educational opportunities.
Meanwhile, the Prime Minister’s National Health Programme has been allocated Rs3 billion to improve healthcare access and strengthen medical services for citizens across the country.
The wide-ranging allocations indicate that the government is betting heavily on infrastructure-led growth and public welfare spending as part of its economic strategy for the coming fiscal year.
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