Pakistan’s Public Sector Development Programme (PSDP) for fiscal year 2025–26 includes major allocations for projects linked to the China-Pakistan Economic Corridor (CPEC) and broader Sino-Pak cooperation. The funding supports infrastructure development, scientific research, academic exchange, and institutional strengthening aimed at deepening bilateral ties. The total allocation for CPEC-related and China-supported initiatives stands at approximately Rs. 12.295 billion.
A key highlight in the PSDP is Rs. 6.5 billion earmarked for the relocation of the Karakoram Highway between Thakot and Raikot. This project, financed by China’s EXIM Bank, is necessary due to dam construction on the Indus River and carries an overall estimated cost exceeding Rs. 502 billion.
Another major allocation of Rs. 4 billion has been made for the New Gwadar International Airport, a vital CPEC infrastructure project designed to enhance air connectivity and facilitate trade via the strategic port city.
In the education and research sector, Rs. 800 million have been allocated to establish the China-Pakistan Joint Research Centre on Earth Sciences at Quaid-i-Azam University, a project approved in 2023 to boost scientific collaboration between the two nations.
The Centre of Excellence for CPEC, a collaborative effort with China’s National Development and Reform Commission, will receive Rs. 375 million. Additionally, Rs. 200 million have been allotted for academic exchange under the CPEC Consortium of Universities to promote institutional partnerships in higher education.
To advance industrial cooperation, Rs. 150 million have been allocated to the Board of Investment for establishing a Project Management Unit under the CPEC Industrial Cooperation Development Project.
The PSDP also includes funding for railway initiatives, with Rs. 50 million assigned to the CPEC Support Project at the Ministry of Railways and Rs. 20 million for initial design and vetting work related to the Main Line-1 (ML-1) upgrade and a proposed dry port near Havelian.
Furthermore, Rs. 200 million have been allocated to operationalize the newly approved CPEC Secretariat, which will act as the central administrative and coordination body for all current and future CPEC-related activities.
Overall, these allocations underscore Pakistan’s sustained commitment to advancing CPEC and expanding cooperation with China across critical sectors under the PSDP 2025–26.
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