Out of the downward-revised development budget of Rs1.096 trillion, the federal government has utilized only 54%—approximately Rs0.593 trillion—during the first 11 months of the current fiscal year.
Concurrently, the SDGs Achievement Programme, a controversial initiative designated for treasury lawmakers, expended 71% of its revised Rs48 billion allocation, totaling Rs35 billion by the fiscal year-end.
According to official data obtained by The News, the rate of development fund utilization stood at a mere 54% in the initial 11 months. With only one month remaining until the fiscal year concludes on June 30, 2025, the total utilization for the outgoing fiscal year remains to be seen.
The government is now poised to allocate Rs1 trillion for the Public Sector Development Programme (PSDP) in the upcoming budget for 2025-26. The Annual Plan Coordination Committee (APCC) is scheduled to review the next PSDP today (Monday). Initially, development spending of Rs1.4 trillion had been earmarked for PSDP along with Public Private Partnership, but this figure was subsequently revised downwards twice, first to Rs1.25 trillion and then further reduced to Rs1.096 trillion.
During the first 11 months (July to May) of the 2025-26 period, the government sanctioned Rs0.64 trillion. Of this, the rupee component of development budget spending amounted to Rs0.47 trillion in the first 11 months. The foreign exchange component, initially envisioned at Rs226 billion for the entire fiscal year, saw a utilization of Rs0.123 trillion during the first 11 months of the current fiscal year (CFY).
Sources indicated that the release of funds remained sluggish during the first half of the CFY, impeding the momentum of development schemes.
The government now plans to allocate PSDP funding of Rs1 trillion, significantly less than the ministries’ collective demand of Rs3 trillion. The Planning Ministry had advocated for increasing the PSDP to Rs1.6 trillion to ensure the completion of certain ongoing schemes, but the final proposed allocation stands at Rs1 trillion.
Initially, the Finance Ministry had provided an indicative budget ceiling of Rs0.921 trillion, which was later increased to Rs1 trillion for the next budget.
