ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said that despite tight fiscal constraints, Pakistan had achieved a historic milestone in development spending by crossing Rs 1 trillion for financial year 2024-25.
“First time ever Rs 1.46 trillion (96 percent) of the PSDP for FY2024–25 had been utilised, reflecting strong implementation. This utilisation is driving inclusive growth through targeted investments in exports, innovation, and human development. The PSDP, which was limited to Rs 754 billion last year, is now back on the path of growth. The PSDP, initially set at Rs 1.4 trillion, was reduced to Rs 1.1 trillion due to macroeconomic constraints,” the minister expressed these views while speaking at the launch of the “Monthly Development Report” on Thursday.
He said that for the first time ever, Pakistan has closed its development budget with such high utilisation, reflecting our unwavering commitment to development as a national priority.
Govt spends record Rs1.046tr under PSDP in FY25: Ahsan Iqbal
The minister said that any underutilisation this year would have shifted financial burdens to the next fiscal year, where the PSDP has already been further reduced to Rs 1 trillion.
“We had no fiscal space to leave Rs 200-300 billion unutilised that would have created a backlog and severely impacted our development portfolio. Thankfully, we avoided that scenario through discipline and coordination,” he said.
He said that in the current fiscal year, Balochistan projects have been given top priority and Rs 210 billion has been allocated for 147 projects. He said that the launch of infrastructure projects in Balochistan would help stimulate the economy of Balochistan and creating development and employment opportunities.
He said, “Under Uraan Pakistan, we are witnessing a positive turnaround in economy. One of the biggest indicators is inflation, which dropped to 4.5 percent, the lowest in nine years. That’s a 23.4 percent decrease from last year — a rare feat globally.”
The minister said that Pakistan’s macroeconomic performance in financial year 2025 demonstrated resilience despite global headwinds, with GDP growth rising to 2.7 percent and the inflation dropping sharply to an average of 4.5 percent, the lowest since financial year 2016. He said that the inflation rate in the previous year was 23.4 percent. He said that remittances exceed $38 billion, a 27 percent increase in one year. He said that Pakistan Stock Exchange recorded 65 percent growth in fiscal year 2024-2025.
He said that strong fiscal consolidation reduced the deficit to 3.7 percent of GDP, supported by record tax revenues of Rs 11.740 trillion, while the external sector posted a $1.8 billion current account surplus, driven by higher exports and record remittances.
On the development front, the minister said that 33 projects at cost of Rs 90.4 billion were approved by the Central Development Working Party (CDWP) in June 2025, while 19 major projects at cost of Rs 1.423 trillion were recommended to the Executive Committee of the National Economic Council (ECNEC). He said that the remaining seven projects were deferred for further review. These initiatives are expected to create approximately 9,968 direct and 47,174 indirect jobs in the coming months, he said.
He said that major investments targeted energy (over Rs500 billion), transport (Hyderabad–Sukkur Motorway at Rs 395 billion, Eastbay Expressway at Rs 301 billion), education (Rs 43 billion for 17 projects), health (Rs 25.5 billion), and water (Ghand Dam at Rs 6.4 billion).
Iqbal said, “Due to improved scrutiny and evaluation of projects, Rs 1 billion in savings was achieved during June.”
He said that the global ranking of Pakistani passports has improved, with the Pakistani passport moving up from 113 to 100.
He said that Pakistan demonstrated its defensive superiority in the region through “Operation Bunyan um Marsoos.”
He said that Pakistan’s stance on the Pahalgam attack and Iran-Israel tensions was recognised globally.
He said that the world rejected India’s narrative and accepted Pakistan’s stance, adding Pakistan achieved a major success on the diplomatic front.
He said that our goal is to achieve one trillion-dollar economy by 2035. A major digital connectivity project worth Rs 2,150 million is underway in 30 cities of AJK and GB. The initiative is transforming lives by expanding access to education, healthcare, tourism, and business opportunities in these remote areas.
Copyright Business Recorder, 2025
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