ISLAMABAD: Out of the downward-revised development budget of Rs1.096 trillion, the federal government has managed to utilise only 54% — roughly Rs593 billion — during the first 11 months of the ongoing fiscal year, official data reveals.
In contrast, the Sustainable Development Goals (SDGs) Achievement Programme — a politically sensitive initiative primarily benefiting treasury lawmakers — recorded a higher utilisation rate. By the end of the fiscal year, it had spent Rs35 billion, or 71% of its revised Rs48 billion allocation.
With just one month remaining in the fiscal year, which ends on June 30, 2025, it remains uncertain how much of the remaining development budget will be spent.
Looking ahead, the government plans to allocate Rs1 trillion for the Public Sector Development Programme (PSDP) in the 2025–26 budget. The Annual Plan Coordination Committee (APCC) is scheduled to review and finalise the next PSDP today (Monday).
Initially, Rs1.4 trillion was earmarked for development spending under the PSDP and Public-Private Partnership arrangements. However, this figure was revised downward twice — first to Rs1.25 trillion, and later to Rs1.096 trillion.
From July to May of the current fiscal year, total sanctioned funds amounted to Rs640 billion. Of this, Rs470 billion came from domestic resources, while Rs123 billion of the Rs226 billion allocated foreign exchange component was utilised.
Sources indicate that the pace of fund releases was particularly sluggish during the first half of the fiscal year, hampering the progress of development projects.
Despite federal ministries requesting Rs3 trillion for the upcoming PSDP, the Planning Ministry had recommended a reduced allocation of Rs1.6 trillion to ensure the completion of key ongoing projects. Ultimately, the proposed allocation was trimmed to Rs1 trillion.
Initially, the Finance Ministry had set an indicative ceiling of Rs921 billion, which was later increased to Rs1 trillion as part of the upcoming federal budget.
