By Ayesha Saba

 The federal government continues to allocate significant development resources to projects falling within provincial domains despite the devolution of many sectors under the 18th Constitutional Amendment, according to official planning documents. A presentation prepared for the Annual Plan Coordination Committee (APCC) shows that a substantial portion of the Public Sector Development Programme (PSDP) is still being spent on projects classified as having a provincial nature.

The document notes that provincial nature projects include schemes in sectors that were devolved to provinces following the 18th Amendment. These projects are primarily funded through federal entities such as the Finance Division, Housing and Works Division, Water Resources Division and other ministries. According to the presentation, federal funding for provincial nature projects has fluctuated considerably over the years but remains a notable component of the PSDP portfolio. In FY2012-13, allocations for such projects stood at Rs45 billion. The figure increased to Rs53 billion in FY2013-14 and Rs55 billion in FY2014-15 before declining to Rs27 billion in FY2015-16.

Funding later rose to Rs64 billion in FY2017-18 and remained above Rs50 billion in subsequent years. A significant increase was recorded in FY2021-22 when allocations reached Rs150 billion. The trend continued in recent years, with allocations amounting to Rs91 billion in FY2022-23 and Rs141 billion in FY2023-24. The figure further increased to Rs196 billion in FY2024-25 before easing to Rs143 billion in FY2025-26.

The presentation also shows that the number of provincial nature projects financed through the federal PSDP remains substantial. There were 310 such projects in FY2023-24, 251 projects in FY2024-25 and 175 projects in FY2025-26. According to the document, the figures do not include several umbrella programmes implemented across provinces. These include initiatives such as Green Pakistan projects, agriculture-related programmes and Sustainable Development Goals (SDGs) interventions, suggesting that the overall federal footprint in provincial sectors may be larger.

The Planning Ministry presentation highlights the continued federal involvement in development activities across provinces despite constitutional devolution, reflecting the federal government's role in financing strategic, cross-provincial and special development initiatives.

The document indicates that federal support remains particularly visible in areas linked to special regions, water infrastructure, housing and development programmes implemented through federal ministries and divisions. The continued allocation of PSDP resources to provincial nature projects comes at a time when the federal development portfolio is facing increasing financial pressures. The presentation shows that the overall throw-forward of federal development projects has reached Rs10.818 trillion, while ongoing projects require Rs3.377 trillion in FY2026-27 against an Indicative Budget Ceiling of Rs1.126 trillion.

The figures underline the challenge of balancing federal development priorities, constitutional responsibilities and resource constraints within Pakistan’s evolving fiscal framework.

Credit: INP-WealthPk