The federal government is expected to finalize a record Rs. 4.1 trillion national development budget for the upcoming fiscal year 2025-26.

The Annual Plan Coordination Committee (APCC) will convene today to review and approve development schemes across federal and provincial governments. Macroeconomic targets, including 4.2% GDP growth and 7.5% inflation, will also be discussed.

This year’s total development allocation is projected to be Rs. 300 billion higher than the previous fiscal year’s budget. However, the Public Sector Development Program (PSDP) will see a reduction to Rs. 1 trillion, down Rs. 400 billion from its original allocation.

Provincial Budgets Breakdown:

• Punjab: Rs. 1.19 trillion
• Sindh: Rs. 887 billion
• Khyber Pakhtunkhwa: Rs. 440 billion
• Balochistan: Rs. 280 billion

Meanwhile, key sectors face significant budget cuts, with the education budget dropping by 27% to Rs. 20 billion and the Higher Education Commission’s allocation shrinking to Rs. 45 billion. The power sector will also see a 41% reduction, bringing its budget down to Rs. 104 billion.