By Moaaz Manzoor

Balochistan is set to remain a major beneficiary of federal development spending in FY2026-27, with dedicated allocations proposed for infrastructure, connectivity and regional development projects despite growing fiscal constraints.

According to a presentation prepared for the Annual Plan Coordination Committee (APCC), the province has been accorded special consideration in the proposed Public Sector Development Programme (PSDP) framework for the next fiscal year.

The document shows that out of the projected Rs1.126 trillion PSDP, Rs100 billion has been specifically earmarked for Balochistan projects, excluding funding for the N-25 highway project.

In addition, the N-25, also known as the Pakistan Expressway, has been identified as one of the government's highest-priority infrastructure schemes. The project alone is expected to receive Rs290 billion in FY2026-27.

According to the presentation, the N-25 carries a total project cost of Rs415.1 billion and a throw-forward of Rs390.1 billion. The scheme received Rs100 billion under PSDP 2025-26 and remains one of the largest transport-sector commitments in the federal development portfolio.

The proposed allocations underscore the government's continued emphasis on improving connectivity in Balochistan, which occupies a strategic position linking Pakistan with regional trade corridors and international markets.

The presentation also highlights the M-8 motorway among important transport-sector projects. The project carries a total cost of Rs96.1 billion and is projected to require Rs44 billion in FY2026-27.

Beyond Balochistan-specific allocations, the document indicates that projects in special regions continue to receive priority treatment. A combined Rs153 billion has been proposed for Azad Jammu and Kashmir, Gilgit-Baltistan and merged districts under the FY2026-27 development framework.

The Planning Ministry presentation shows that these commitments are being accommodated despite increasing pressure on federal development resources. Ongoing projects require approximately Rs3.377 trillion in FY2026-27, while the Indicative Budget Ceiling communicated by the Finance Division stands at Rs1.126 trillion.

The document further notes that several mandatory commitments, including regional development allocations, coalition obligations and rupee-cover requirements for foreign-funded projects, will consume a significant portion of available PSDP resources.

According to the presentation, the federal development portfolio currently carries a throw-forward of Rs10.818 trillion, reflecting the amount required to complete approved but unfinished projects.

The figures suggest that despite tightening fiscal space and rising development liabilities, Balochistan's connectivity and development schemes continue to occupy a prominent position in federal planning priorities.

Credit: INP-WealthPk