Pakistan’s four provinces have collectively proposed a development budget of Rs3,138 billion for the fiscal year 2026-27, reflecting an increase of Rs76 billion compared to the current year. The plan highlights a continued push toward infrastructure expansion, public services improvement, and broader regional development priorities.
According to budget documents, provincial governments will finance most of the development spending through local resources, while external assistance will also play a supporting role. As a result, Rs2,478 billion is expected to come from provincial revenues, with Rs660 billion linked to foreign-funded development programs.
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Punjab has emerged as the largest contributor, proposing a record Rs1,450 billion development budget for the upcoming fiscal year. Notably, this allocation surpasses the proposed federal development budget and reflects an increase of Rs95 billion compared to the current year’s spending plan.
Furthermore, Punjab plans to finance the majority of its projects through its own resources, allocating Rs1,306 billion from provincial funds. In addition, Rs144 billion is expected from foreign assistance to support major infrastructure and development initiatives across the province.
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Meanwhile, Sindh has proposed a development budget of Rs816 billion, with Rs520 billion coming from local resources and Rs296 billion from external assistance. Similarly, Khyber Pakhtunkhwa has set its development spending at Rs564 billion, including Rs377 billion from provincial revenue and Rs187 billion from foreign support.
Lastly, Balochistan has proposed a Rs308 billion development budget, with Rs275 billion financed locally and Rs33 billion expected from external assistance. Overall, the proposed allocations reflect a continued focus on development-led growth, with provinces prioritizing infrastructure, social services, and long-term economic stability.