Increase reflects rise in administrative and public service expenditures
ISLAMABAD: The federal government has proposed an allocation of Rs1.754 billion for the operational expenses of the Prime Minister’s Office (PMO) in the fiscal year 2025–26, an increase from the revised allocation of Rs1.453 billion for the current year.
As per the budget documents, over Rs87 million is earmarked for internal administrative expenses, while Rs896.542 million has been allocated for expenditures related to public services and engagements handled by the PMO.
The budget proposal was presented by Finance Minister Muhammad Aurangzeb in the National Assembly on Tuesday. With a total outlay of Rs17.573 trillion, this marks the second federal budget under the current coalition government.
In his budget speech, Aurangzeb emphasized the government’s fiscal achievements, including a primary surplus of 2.4% of GDP and a significant reduction in inflation to 4.7%, which he attributed to timely and targeted policy interventions.
Higher Education Sector Funding
In a parallel development, the government has allocated Rs39.488 billion under the Public Sector Development Programme (PSDP) for the Higher Education Commission (HEC). This includes funding for 128 ongoing and 12 new development projects.
According to official budget documents:
- Rs38.488 billion is designated for ongoing projects.
- Rs1 billion is reserved for new initiatives in the higher education sector.
Notable allocations include:
- Rs500 million for the Allama Muhammad Iqbal Scholarships for 3,000 Afghan students, under the Prime Minister’s directive.
- Rs200 million for the Construction of an Academic Block at Shaheed Zulfiqar Ali Bhutto Medical University (SZABMU) in Islamabad.
These investments underline the government’s continued focus on administrative efficiency and human capital development through higher education.

