PSDP 2025–26: Strategic Allocations for CPEC and Sino-Pak Cooperation Projects Allocated Rs. 12.295 Billion
ISLAMABAD, July 10 (Gwadar Pro) - Pakistan’s Public Sector Development Programme (PSDP) for fiscal year 2025–26 includes significant funding for projects tied to China-Pakistan Economic Corridor (CPEC) and other Sino-Pak cooperation initiatives. The allocations cover infrastructure upgrades, research and academic partnerships, and institutional support aimed at deepening bilateral engagement. The total allocation for CPEC-linked and China-supported initiatives in PSDP 2025–26 stands at approximately Rs. 12.295 billion (Rs. 12,295 million).
Among the most prominent allocations in PSDP 2025–26 is Rs. 6.5 billion (Rs. 6500 million) set aside for the relocation of the Karakoram Highway between Thakot and Raikot. The project, funded by China’s EXIM Bank, is being undertaken due to the construction of dams on the Indus River and carries a total estimated cost of over Rs. 502 billion (Rs. 502,591.319 million).
According to PSDP 2025-26, another major allocation of Rs. 4 billion has been made for the New Gwadar International Airport, a flagship CPEC infrastructure project aimed at improving air connectivity and facilitating trade through the port city.
The government has earmarked Rs. 800 million for the establishment of the China-Pakistan Joint Research Centre on Earth Sciences at Quaid-i-Azam University in Islamabad. The project, approved in 2023, is intended to strengthen bilateral scientific cooperation.
The Centre of Excellence for CPEC, a joint initiative with China’s National Development and Reform Commission (NDRC), will receive Rs. 375 million. Similarly, Rs. 200 million have been allocated for academic collaboration under the CPEC Consortium of Universities, continuing efforts to build higher education partnerships between Pakistani and Chinese institutions.
To support industrial cooperation, the Board of Investment will receive Rs. 150 million for establishing a Project Management Unit under the CPEC Industrial Cooperation Development Project.
Several allocations also target railway-related initiatives. These include Rs. 50 million for the CPEC Support Project at the Ministry of Railways and Rs. 20 million for the preliminary design and vetting work related to the Main Line-1 (ML-1) upgrade and the proposed dry port near Havelian.
In addition, the government has set aside Rs. 200 million for the newly approved CPEC Secretariat, which will serve as the administrative and strategic coordination hub for ongoing and future CPEC projects.
Together, these projects reflect Pakistan’s continued prioritization of CPEC and broader Sino-Pak cooperation, with a total of Rs. 12.295 billion allocated under the current development programme.
