Pakistan’s PSDP utilization hits 96% in FY25 as government pushes jobs, growth

Pakistan closed out fiscal year 2024-2025 with a near-record utilization of its Public Sector Development Program (PSDP), spending PKR 1,045 billion — 96% of the authorized amount — as the government doubled down on infrastructure, employment, and inclusive growth.

Backed by a PKR 1,100 billion PSDP envelope, the Ministry of Planning greenlit PKR 1,094 billion over the year, including PKR 58 billion in June alone, under its quarterly release strategy.

The latest figures reflect one of the most efficient development spending cycles in recent years, signaling better fiscal management and stronger execution capacity across ministries.

Beyond numbers, the impact on jobs was substantial. A total of 52 projects — 33 approved by the Central Development Working Party (CDWP) and 19 recommended to the Executive Committee of the National Economic Council (ECNEC) — are projected to generate 9,986 direct and 47,174 indirect jobs across the country. Additionally, over 5,000 formal posts will be created during the execution phase.

A detailed cost rationalization exercise in May helped trim PKR 891 million from inflated project estimates. Officials expect savings to increase further as pending rationalizations for four major projects, representing 44% of ECNEC submissions, are finalized.

As Pakistan braces for the fiscal year 2025-26 (FY26) under the new “Uraan Pakistan” framework, the focus remains on translating allocations into real-world outcomes: more jobs, better infrastructure, and smarter governance.