Pakistan utilizes just 54% of development funds in 11 months of FY25

Pakistan has disbursed only 54.43% of the total funds allocated to federal ministries and divisions under the Public Sector Development Program (PSDP) in 11 months of the current fiscal year, according to data from the Planning Commission.

For fiscal year 2024-25 (FY25), the government earmarked PKR 1.096 trillion ($3.9 billion) under the federal PSDP. Of that amount, PKR 894.08 billion ($3.2 billion) was authorized for release to ministries and sectors, but actual spending reached just PKR 596.6 billion.

Federal ministries spent PKR 437.04 billion on development projects against a total allocation of PKR 829.6 billion.

National Highway Authority and the Power Division utilized PKR 159.5 billion out of their PKR 265.8 billion allocation for the fiscal year.

Under the newly approved federal budget for 2025-26, the government has allocated PKR 4.224 trillion for the PSDP, signaling a continued emphasis on infrastructure and social development. Official documents show that the federal PSDP will receive PKR 1.0 trillion, while provinces will earmark PKR 2.869 trillion under their Annual Development Plans.

An additional PKR 255 billion has been set aside for state-owned enterprises to fund development projects.

Officials said 60% of the federal PSDP will be directed toward core infrastructure projects, including roads, railways and connectivity corridors.

However, the PSDP’s share as a percentage of GDP has declined steadily over the past decade, dropping from 1.7% in FY14 to just 0.6% in FY25. This trend has raised concerns about delays in critical national projects.

For the upcoming fiscal year, the government plans to prioritize ongoing projects that have already seen over 80% expenditure to accelerate their completion.

The development strategy aligns with Pakistan’s “5Es” economic framework and the broader “Uraan Pakistan” vision, which seeks to advance Sustainable Development Goals through targeted investments in economic and social infrastructure.