The federal government has announced the Public Sector Development Programme (PSDP) for FY2026, with a massive Rs1 trillion outlay. However, only Rs16.59 billion less than 2% has been reserved for new development projects, while the majority of funds are directed toward ongoing schemes of national importance.
According to the Ministry of Planning, PSDP currently includes 801 projects 733 ongoing and 68 new. The allocations show a heavy tilt toward continuity, leaving minimal space for fresh initiatives across provinces and regions.
PSDP Allocations Breakdown (FY2026)
| Region/Category | Total Allocation (Rs bn) | Ongoing Projects (Rs bn) | New Projects (Rs bn) |
| National Projects | 313.0 | 306.9 | 6.65 |
| Punjab | 76.63 | 75.0 | 1.55 |
| Sindh | 146.0 | 144.85 | 1.15 |
| Khyber Pakhtunkhwa | 308.0 | 307.8 | 0.20 |
| Balochistan | 209.6 | 208.3 | 1.3 |
| Gilgit-Baltistan | 59.16 | 58.98 | 0.183 |
| Merged Districts + ICT | 67.6 | 62.02 | 5.58 |
The ministry clarified that PSDP funds are not distributed like the NFC Award but are allocated for projects prepared and approved by federal ministries and divisions.
This distribution highlights the government’s emphasis on completion of existing mega projects while keeping new development initiatives limited.