Pakistan authorizes PKR 349 billion in development funds in first five months

Pakistan’s Ministry of Planning, Development and Special Initiatives has authorized PKR 348.98 billion for development projects under the Public Sector Development Program (PSDP) for the July-November period of fiscal year 2025-26, official data showed.

This is just 34.9% of the total budgeted allocation of PKR 1 trillion.

Actual expenditures during the period stood at PKR 91.91 billion, representing 26.34% of the authorized amount, according to figures released by the Ministry of Finance.

Under the government’s development budget strategy for FY26, the Ministry of Planning is empowered to release funds in phases — 15% in the first quarter, 20% in the second, 25% in the third, and 40% in the fourth quarter of the fiscal year.

Data available on the Ministry of Planning’s website showed that PKR 237.77 billion — about 34.85% — was authorized for development projects of federal ministries, divisions and departments out of a total allocation of PKR 682.26 billion, which includes PKR 102 billion in foreign loan financing. Of this amount, PKR 68.4 billion, or 28.77%, has been spent so far.

For the National Highways Authority (NHA) and the power sector, including the National Transmission and Despatch Company (NTDC) and Pakistan Electric Power Company (PEPCO), the ministry authorized PKR 111.21 billion out of a combined budgeted allocation of PKR 317.74 billion. Actual utilization in these sectors has reached PKR 23.5 billion.

Specifically, the NHA received authorization of PKR 79.44 billion from an allocation of PKR 226.98 billion, with expenditures totaling PKR 20.74 billion so far. The power sector was authorized PKR 31.76 billion out of PKR 90.76 billion, while spending during July-November stood at PKR 2.76 billion.

The ministry also authorized PKR 68 billion out of PKR 253.23 billion allocated for development projects in provinces and special areas, and PKR 45 billion out of PKR 128.9 billion for the Water Resources Division.

Other notable authorizations include PKR 43.18 billion out of PKR 70.39 billion for the Cabinet Division; PKR 386.9 million for the Board of Investment; PKR 974.28 million for the Climate Change and Environmental Coordination Division; PKR 6.5 billion for the Federal Education and Professional Training Division; PKR 4.17 billion for the Defense Division; PKR 5.68 billion for the Information Technology and Telecom Division; and PKR 7.85 billion for Pakistan Railways.

In addition, the Higher Education Commission (HEC) received authorization of PKR 15.74 billion out of PKR 41.66 billion, while PKR 1.48 billion was approved for the National Food Security and Research Division.

The ministry further authorized PKR 6.47 billion for the Interior Division, PKR 1.21 billion for the Maritime Affairs Division, PKR 5 billion for the National Health Services, Regulation and Coordination Division, and PKR 1.68 billion for the Science and Technology and Research Division.