Pakistan’s federal government utilised only Rs103.87 billion out of the Rs1 trillion allocated under the Public Sector Development Programme (PSDP) during the first four months of fiscal year 2026-27. The expenditure recorded between July and October 2026 accounted for just 10.4 per cent of the annual development budget.
According to data from the Ministry of Planning and Development, the Planning Commission authorised Rs412.3 billion for various development projects during the same period. However, actual spending remained considerably lower, raising concerns about the pace of project implementation and the utilisation of public funds.
Around 33 federal ministries and divisions spent Rs74.65 billion against their combined annual allocation of Rs682 billion, representing approximately 11 per cent of their development budgets. Government corporations, mainly operating in the power and highways sectors, utilised around Rs29 billion, or 9.3 per cent of their combined Rs313 billion allocation.
The National Highway Authority (NHA) spent Rs13.3 billion, equivalent to 5.8 per cent of its annual allocation of Rs225 billion. Meanwhile, the power sector utilised Rs16 billion, representing 18 per cent of its Rs98 billion development budget.
Among federal departments, the Water Resources Division recorded the highest expenditure, spending Rs18.7 billion, or 18 per cent of its annual allocation of Rs103 billion. The Federal Education and Professional Training Division utilised Rs6.88 billion, accounting for 19 per cent of its Rs36 billion budget. The National Health Services, Regulations and Coordination Division spent Rs6.6 billion, reaching 41 per cent of its Rs16 billion allocation.
The Higher Education Commission utilised Rs4.7 billion, representing 10 per cent of its annual development budget, while the Ministry of Railways spent Rs4.65 billion, or around 11 per cent. The Ministry of Planning and Development used Rs2.15 billion, less than 10 per cent of its allocation, while the Information Technology Ministry spent Rs1.45 billion, equivalent to 7.4 per cent.
Development expenditure in the provinces and special areas, including Azad Jammu and Kashmir and Gilgit-Baltistan, stood at Rs23.8 billion against an annual allocation of Rs233 billion. This represented approximately 10 per cent of the available development budget.
Spending on climate-related projects also remained limited. The Climate Change Division utilised Rs259 million, or 10.4 per cent of its Rs2.5 billion allocation. Similarly, the National Food Security Division spent only Rs65 million from its Rs4.2 billion development budget, representing less than 1.5 per cent.
Under the government’s financial management framework, development funds are released in phases during the fiscal year. The schedule provides for 15 per cent of the annual allocation in the first quarter, 20 per cent in the second, 25 per cent in the third and the remaining amount in the final quarter. This arrangement is intended to align development expenditure with revenue collection and fiscal targets agreed with the International Monetary Fund.
The data also showed that several federal ministries and divisions had not utilised any development funds during the four-month period. The overall spending figures highlight the gap between authorised development funding and actual expenditure during the opening months of FY27.
