Pakistan spends PKR 61.3 billion on federal development projects in Q1

Pakistan spent PKR 61.3 billion on its federal development program during the first quarter of the current fiscal year, with major expenditures recorded on water, highways, power, education and other infrastructure projects, according to official data.

The government spent PKR 43.85 billion on development projects implemented by federal ministries and divisions during July-September, while another PKR 17.47 billion was spent through corporations, according to the latest Public Sector Development Programme data.

The total federal PSDP allocation for fiscal year 2026-27 is PKR 1 trillion, including PKR 745 billion in local financing and PKR 255 billion in foreign assistance.

Where did federal development spending go?

The Water Resources Division accounted for the largest development expenditure among federal ministries and divisions, with PKR 13.29 billion spent during the first quarter against an annual allocation of PKR 103.09 billion.

Among corporations, the National Highway Authority spent PKR 9.30 billion on development projects during the period, while the Power Division, including NTDC and PEPCO projects, spent PKR 8.17 billion.

The Federal Education and Professional Training Division spent PKR 6.03 billion on development projects during the quarter, while the Higher Education Commission spent another PKR 2.74 billion.

The Railways Division spent PKR 2.35 billion on development projects against an annual allocation of PKR 40.66 billion, while the Planning, Development and Special Initiatives Division spent PKR 1.56 billion.

Projects related to provinces and special areas accounted for PKR 12.77 billion of spending by federal ministries and divisions during the quarter.

The National Health Services, Regulations and Coordination Division spent PKR 644.85 million on development projects during July-September.

Other significant expenditures included PKR 1.42 billion by the Revenue Division and PKR 1.34 billion by the Defence Division.

How much of the development budget has been spent?

Against the federal ministries’ combined annual allocation of PKR 682.49 billion, PKR 187.50 billion had been authorized by the end of September, while actual expenditure stood at PKR 43.85 billion during the first quarter.

For corporations, the government had authorized PKR 33.22 billion against a combined annual allocation of PKR 312.51 billion, with expenditure reaching PKR 17.47 billion during the quarter.

The National Highway Authority has been allocated PKR 224.51 billion for fiscal year 2026-27, while the Power Division has an annual development allocation of PKR 88 billion.

The federal PSDP also includes PKR 4 billion for project liabilities and PKR 1 billion for new initiatives under CPEC 2.0.