The Ministry of Housing and Works is set to receive a significantly reduced development budget in the upcoming fiscal year, reflecting an overall cut of Rs8.62 billion compared to the current allocation. Officials confirmed the revised figures as part of the federal budget 2026-27, raising concerns about reduced spending in the housing sector.
Moreover, the ministry’s development budget has dropped from Rs13.44 billion in the current fiscal year to just Rs4.82 billion for the next year. This sharp decline comes at a time when Pakistan continues to face a housing shortage estimated at more than 10 million units nationwide.
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According to budget documents, the total cost of ongoing development projects under the ministry exceeds Rs40 billion. However, only a limited portion has been allocated for execution in 2026-27, which may slow down progress on several infrastructure and housing-related schemes across the country.
Meanwhile, a major share of the development funds has been directed toward Karachi-based projects under the proposed budget. Authorities have prioritized urban infrastructure improvements in densely populated areas, reflecting a focus on large metropolitan development needs.
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Furthermore, the Karachi Green Line project has received the highest allocation of Rs1.98 billion among all schemes under the ministry. In addition, over Rs1.10 billion has been earmarked for development works in Orangi, Nazimabad and Liaquatabad to support urban infrastructure upgrades.
Additionally, Hyderabad has also been included in the development plan with funding allocated for water supply and sewerage projects aimed at improving civic facilities. In Khyber Pakhtunkhwa, the construction of two bridges over the Siran River in Mansehra has been included with over Rs680 million proposed for infrastructure development.