ISLAMABAD: The Ministry of Planning, Development and Special Initiatives authorized Rs 558.12 billion (55.8 percent) for development projects under the Public Sector Development Programme (PSDP) 2025–26 against the Rs 1 trillion budgeted allocation during July–February, while actual expenditures stood at Rs 361.27 billion.
These figures came a few days after Prime Minister Shehbaz Sharif announced a 20 percent cut in the development budget for the fourth quarter for both the federal government and the provinces as part of austerity measures.
According to the Ministry of Finance’s notification, the Ministry of Planning, Development and Special Initiatives authorised 15 percent of funds for the first quarter, 20 percent for the second quarter, 25 percent for the third quarter, and 40 percent for the fourth quarter under the PSDP.
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According to the data available on the Ministry of Planning’s website, the ministry authorisedRs393.31 billion (57.34 percent) for development projects of various federal ministries, divisions, and other departments, against Rs 685.96 billion, including an Rs 102 billion foreign loan budgeted allocation, for the financial year 2025-26.
A total of Rs254.55 billion has been expended so far on the development projects being executed by various federal ministries, divisions, and departments.
The ministry authorized Rs 164.8 billion out of Rs 314.04 billion budgeted allocations for the National Highways Authority (NHA) and power sector (NTDC/PEPCO) for development projects, but a total of Rs106 billion has been utilised so far on the development projects.
A total of Rs 133.031 billion has been authorised out of Rs 223.28 billion allocated for the development projects of the NHA, while Rs71.98 billion has been spent so far. A total of Rs 31.77 billion has been authorised out of Rs 90.76 billion for the power sector (NTDC/PEPCO), while Rs34.744 billion has been utilised during July-February 2025.
According to the data, a total of Rs129.95 billion has been authorised out of Rs249.2 billion for development projects of provinces and Special Areas, and Rs393.3 billion has been authorised out of Rs685.96 billion allocated for the projects of the Water Resources Division.
The ministry also authorized a total of Rs 25.44 billion out of Rs 42.158 billion budgeted allocation and Rs 6.566 billion authorized out of Rs 10.9 billion for Defence Division. A total of Rs 8.2 billion has been authorized out of Rs 13.91 billion for Interior Division.
The Ministry authorized Rs 13.45 billion out of Rs 22.42 billion budget allocation for development projects of the Railway Division during July-February 2025-26.
A total of Rs57.23 billion has been authorised out of Rs 70.388 billion budgeted allocations for development projects for the Cabinet Division, Rs 386 million for Board of Investment, Rs 1.67 billion for the Climate Change and Environmental Coordination Division, Rs19.29 billion for the Federal Education and Professional Training Division, Rs 7.9 billion for Information Technology and Telecom Division, and Rs13.45 billion authorized out of Rs 22.415 billion for Planning, Development and Special Initiatives.
Copyright Business Recorder, 2026
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