Pakistan’s food security and industrial development sectors have received significantly lower allocations than requested in the proposed Federal Budget 2026-27, raising concerns about the future pace of agricultural and industrial growth.
According to budget documents, the government has allocated a combined Rs. 7.2 billion for the Ministry of National Food Security and Research and the Ministry of Industries and Production, compared to a total funding demand of Rs. 117 billion.
The Ministry of National Food Security has been allocated Rs. 3.2 billion, while the Ministry of Industries and Production will receive Rs. 4 billion for development projects during the next fiscal year.
For the food security sector, budget documents earmark Rs. 2.27 billion for ongoing projects and only Rs. 92.5 million for new initiatives. The funding will support programs related to olive cultivation, certified potato seed production, camel milk development, livestock disease surveillance, and other agricultural activities.
Despite these allocations, stakeholders have expressed concerns that the available funds may not be sufficient to address the country’s growing food security challenges and agricultural modernization needs.
Meanwhile, the Ministry of Industries and Production has allocated Rs. 1.52 billion for the establishment of an industrial park on the land of Pakistan Steel Mills. The budget also includes Rs. 50 million for the Hub Special Economic Zone.
Other proposed allocations include Rs. 200 million for Industrial Design and Automation Centers in Karachi, Lahore, and Sialkot, and Rs. 78 million for the Sialkot Sports Goods Development Center.
The government has further earmarked Rs. 257.2 million to enhance engineering industry capacity, Rs. 300 million for SME facilitation centers, and another Rs. 300 million to support 1,000 industrial setting units.
In addition, Rs. 700 million has been allocated for the revival and development of Pakistan’s precious stones sector.
Economists and industry observers note that while the budget includes funding for several strategic initiatives, the overall allocations remain substantially below sector demands, potentially limiting the pace of reforms, industrial expansion, and agricultural development in the coming fiscal year.
