ISLAMABAD: The federal government has finalized a development budget of Rs 1,000 billion for the fiscal year 2025-26, increasing it from the earlier proposed Rs 921 billion.
A meeting chaired by Federal Planning Minister Ahsan Iqbal directed all ministries to submit their proposals within this budget limit. The revised Public Sector Development Programme (PSDP) for the current year stands at Rs 1,100 billion, but next year’s budget constraints require stricter prioritization.
Iqbal instructed ministries to focus only on the most critical projects, particularly those in their final stages. Despite ministries collectively demanding Rs 3,000 billion, the Planning Ministry has set a minimum requirement of Rs 1,600 billion.
The minister emphasized the importance of the Diamer Bhasha Dam as a key national project. The final PSDP allocations will be made after evaluating proposals based on urgency and economic impact.
