The federal government has slashed Rs 100 billion from the development budget, impacting provinces, federal ministries, and special territories.
The cuts are part of measures to support petrol and diesel subsidies and bolster the Prime Minister’s Provident Fund.
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Major reductions across provinces and territories
Documents reveal that the provinces and special territories bear the brunt of the reductions:
- Provinces & Special Areas: Rs 24.92 billion
- Azad Kashmir & Gilgit-Baltistan: Rs 8.21 billion
- Merged Districts of Khyber Pakhtunkhwa: Rs 6.45 billion
- Provincial Development Budget (additional): Rs 10.17 billion
Members of Parliament also face a cut of Rs 7.3 billion from their development funds.
Cuts in key federal ministries
Several ministries have seen significant reductions in their development allocations:
- Power Sector: Rs 9 billion
- Water Resources Projects: Rs 12.88 billion
- Federal Education: Rs 3.21 billion
- Higher Education Commission (HEC): Included in federal education cuts
- IT Sector: Rs 4.22 billion
- Ministry of Home Affairs: Rs 2.22 billion
- Health Ministry: Rs 1.39–1.41 billion
- Railways: Rs 2.24 billion
- Defense Ministry: Over Rs 1 billion
- Revenue Division: Rs 1.71 billion
- Housing & Works: Rs 1.62 billion
Officials said the reductions will help adjust petrol and diesel subsidies, providing relief to the public amid rising fuel prices. In addition, part of the savings will be transferred to the Prime Minister’s Provident Fund, aimed at supporting strategic development and public welfare initiatives.
