Proposed Budget Allocates Only Rs7.2 Billion Against Rs117 Billion Demand for Food Security and Industry Sectors
ISLAMABAD: The federal government is proposing to allocate only Rs7.2 billion for the food security and industry sectors in the upcoming fiscal year 2026-27, despite a combined funding requirement of Rs117 billion.
According to budget documents, the Ministry of National Food Security and Research and the Ministry of Industries and Production have together sought Rs117 billion for development projects. However, the proposed allocation stands at just Rs7.2 billion, including Rs3.2 billion for food security initiatives and Rs4 billion for industrial development.
For the National Food Security sector, Rs2.27 billion has been earmarked for ongoing projects, while only Rs92.5 million has been proposed for new schemes.
The agriculture-related projects include commercial olive cultivation, production of certified potato seeds, camel milk production initiatives, and livestock disease monitoring programs. However, officials note that funding for these projects remains limited.
In the industrial sector, the government has proposed allocating Rs1.52 billion for the development of an industrial park on the land of Pakistan Steel Mills. The proposed budget also includes only Rs50 million for the Hub Special Economic Zone.
Additionally, Rs200 million has been earmarked for Industrial Design and Automation Centers in Karachi, Lahore, and Sialkot. The Sialkot Sports Goods Development Centre is expected to receive Rs78 million, while Rs257.2 million has been proposed to enhance the capacity of the engineering industry.
The budget proposal further includes Rs300 million for SME Facilitation Centers, Rs300 million for the establishment of 1,000 industrial stitching units, and Rs700 million for the revival and development of the precious stones sector.
The proposed allocations highlight the government’s effort to continue key development projects despite fiscal constraints, though the significant gap between funding demands and proposed allocations may raise concerns among stakeholders in the agriculture and industrial sectors.
