Pakistan Unveils Ambitious Development Budget 2025–26

Pakistan has announced a bold and expansive development budget for the fiscal year 2025–26, signalling a strategic shift from economic crisis to long-term growth and national transformation. Planning Minister Ahsan Iqbal shared the details in a press briefing, stating that just two years ago, the country was on the brink of economic collapse. Today, he said, Pakistan is charting a course rooted in stability, resilience, and inclusive progress.

The government is targeting a GDP growth of 4.2% for the next fiscal year, following a rebound to 2.7% this year. Investor confidence, according to Iqbal, has reached a six-year high—a sign that Pakistan’s economic fundamentals are strengthening. The total development outlay stands at Rs. 4.2 trillion, with Rs. 1 trillion allocated federally and Rs. 3.2 trillion at the provincial level. This budget is fully aligned with the national reform and growth strategy, Uraan Pakistan.

A major highlight of the budget is the significant investment in underserved and previously neglected regions, including Balochistan, Gilgit-Baltistan, and the merged districts of Khyber Pakhtunkhwa. Rs. 42 billion has been earmarked for development in KP’s merged areas, alongside Rs. 12 billion for off-grid solar energy projects and Rs. 2.5 billion for the expansion of FATA University—demonstrating a clear commitment to inclusive development.

Infrastructure and clean energy are also at the forefront. The government has allocated Rs. 223 billion for energy projects, national grid modernisation, and 12 major hydropower initiatives. Key highway and dam projects are also planned to enhance connectivity, create jobs, and strengthen energy security in the face of climate challenges.

Technology and youth empowerment received a substantial boost with the launch of multiple national initiatives aimed at preparing Pakistan’s workforce for the digital age. These include over 23,000 digital skills training opportunities, 18,000 internships, the distribution of 100,000 laptops, and the creation of “Quantum Valley” along with three new National Centres of Innovation.

Human capital development remains central to the government’s strategy. The Rs. 4.2 trillion development budget places strong emphasis on healthcare, education, and social protection. From building new hospitals and upgrading schools to expanding support programmes for the most vulnerable, the government aims to uplift communities and ensure equitable access to basic services.

“This is not just about recovery,” said Ahsan Iqbal. “It is about transforming Pakistan into a country where opportunity, innovation, and resilience are shared by all.” The development budget, he added, is a clear step toward a stronger, more confident Pakistan.