ISLAMABAD: The country’s Public Sector Development Programme (PSDP) spending in the first four months of the current fiscal year struggled at only 10 per cent of the annual allocation.
Total PSDP spending in the first four months (July-October) of 2026-27 amounted to Rs103.87bn 10.4pc of the Rsitrillion allocation, according to the Ministry of Planning and Development.
Actual utilisation was far lower than the Rs412.3bn authorised by the Planning Commission.
This alarming spending pattern on public-interest projects, which is affecting living standards and economic growth, has emerged despite a healthy 0.8pc budget surplus posted in the first quarter ofthe year.
Latest data released by the Ministry of Planning and Development showedthat, excluding corporations, total PSDP expenditure by about 33 ministries and divisions amounted to a meagre Rs74.65bn in the first four months, or about 11pc of the total allocation of Rs682bn. The corporations chiefly the power sector and the National Highways Authority together spent Rs29bn or 9.3pc against their budget allocation of Rs313bn for the whole year.
The NHA could utilise only 5.8pc or Rs13.3bn in four months against its annual allocation of Rs225bn. The power sector was able to use Rs16bn or 18pc of its Rs98bn allocation. The Planning Commission had authorised disbursement of Rs78.6bn for NHA and Rs31bn to the power sector.
Under the mechanism announced by the Ministry of Finance for the current fiscal year, the government should release 15pc of budgeted allocation in the first quarter, followed by 20pc in the second quarter, 25pc in the third quarter and the remaining in the last quarter of the fiscal year to ensure that any shortfall in revenue collection is managed through cuts in the development budget to remain with fiscal targets set with the IMF.
Under this mechanism, the Planning Commission claimed that it had author-ised Rs303bn for disbursement to the federal ministries in the first four months, which accounted for more than 44pc of the annual target (Rsitr) and was higher than allowed in the finance ministry’s instructions, but only Rs75bn or 11pe, could actually be spent on the ground.
Only eight ministries were able to cross the Rsibn spending threshold in 4MFY27, led by the Water Resources Division, which spent Rs18.7bn, or 18pc of its Rs103bn annual allocation. This was followed by Rs6.88bn expenditure in Federal Education and Professional Training against its Rs36bn allocation, accounting for 19pc. Then came Rs6.6bn spending by National Health Services, Regulations and Coordination Division, achieving a healthy rate of 41pc against its allocated share of Rs16bn.
As such, NHSRC exceeded the utilisation target, which was even better when seen in the context of Rs9.6bn authorisation.
Next was Higher Education Commission with a funding utilisation of Rs4.7bn or 10pc of Rs46bn annual allocation. This was followed by the Ministry of Railways with Rs4.65bn utilisation, accounting for around 11pc of its Rs40.65bn allocation. The Ministry ofPlanning and Development itself used only Rs2.15bn, or less than 10pc, against its allocated share of Rs22.6bn.
After that, the Ministry of Information Technology used only Rs1.45bn or only 7.4pc of its Rs19.6bn allocation.
Combined spending in provinces and special areas (Azad Kashmir and GB) for development amounted to Rs23.8bn, or just 10pc of the annual allocation of Rs233bn and the Planning Commission’s authorisation of Rs59.8bn for the first four months. These special areas are provided funds by the finance division under aseparate seasonalpattern.
Likewise, despite the country being at risk of climate disasters, the climate change division spent only Rs259 million in four months or only 10.4pc of its Rs2.5bn allocation. Another critical social-sector ministry National Food Security utilised less than 1.5pc (Rs65m) of its allocation of Rs4.2bn.
About six federal ministries could not spend even a single rupee for development in four months.
They included commerce, communication, Kashmir Affairs, Gilgit-Baltistan and states and frontier regions, petroleum, privatisation, religious affairs and interfaith harmony.Planning and Development itself used only Rs2.15bn, or less than 10pc, against its allocated share of Rs22.6bn.
After that, the Ministry of Information Technology used only Rs1.45bn or only 7.4pc of its Rs19.6bn allocation.
Combined spending in provinces and special areas (Azad Kashmir and GB) for development amounted to Rs23.8bn, or just 10pc of the annual allocation of Rs233bn and the Planning Commission’s authorisation of Rs59.8bn for the first four months. These special areas are provided funds by the finance division under aseparate seasonalpattern.
Likewise, despite the country being at risk of climate disasters, the climate change division spent only Rs259 million in four months or only 10.4pc of its Rs2.5bn allocation. Another critical social-sector ministry National Food Security utilised less than 1.5pc (Rs65m) of its allocation of Rs4.2bn.
About six federal ministries could not spend even a single rupee for development in four months.
They included commerce, communication, Kashmir Affairs, Gilgit-Baltistan and states and frontier regions, petroleum, privatisation, religious affairs and interfaith harmony.