Pakistan, May 9 -- The Sindh government is likely to reduce the allocation for foreign-funded development projects in the upcoming FY2026-27 budget, while significantly increasing proposed schemes under the federal Public Sector Development Programme (PSDP), according to initial budget proposals and official estimates.

Sources said the first draft of the provincial budget for FY2026-27 has been prepared, indicating a major shift in development financing priorities.

Under the proposed framework, allocations for Foreign Project Assistance (FPA) are expected to decline by around Rs70 billion compared to the current fiscal year, while Sindh is likely to propose nearly 100 percent higher PSDP-funded schemes to the federal government.

For th...