ISLAMABAD: Deputy Prime Minister and Foreign Minister Ishaq Dar on Friday urged more efficient use of development funds, even as official data show that nearly half of the country’s allocations remain unspent, highlighting ongoing concerns over the pace of economic recovery.
Chairing a steering committee meeting of the Sustainable Development Goals (SDGs) Achievement Programme (SAP), Dar expressed satisfaction with the programme’s outcomes and stressed that any savings from previous years be reinvested within the same sector and province.
He also called for greater involvement of local communities in identifying infrastructure projects, emphasising that SAP funds should serve the best interest of the people.
According to the Monthly Development Update (May 2026), during the first 10 months of the fiscal year, only 56 percent of Public Sector Development Programme (PSDP) allocations were released, with actual utilisation trailing by about 18 percent.
The PSDP outlay for FY26 was revised down to Rs837.2 billion from Rs1.01 trillion due to fiscal pressures, including the economic impact of the ongoing conflict in the Middle East. While overall utilisation remains below the government’s disbursement schedule, it has improved slightly from the same period last year.
Spending on parliamentarians’ schemes under SAP was comparatively strong, with nearly 70 percent of the Rs63 billion allocations released and largely utilised within five months.
However, regional disparities persist, as the merged districts of the former FATA received just 31 percent of their annual allocation, while AJK and Gilgit-Baltistan utilised 89 percent of theirs.
Officials say the participatory approach aims to align development projects with local needs, from health and education initiatives to transport and utilities.
The meeting was attended by the Minister for Inter-Provincial Coordination, the Minister for Parliamentary Affairs, Tariq Bajwa, the Special Assistant to the Prime Minister on Finance, Shazia Marri MNA, the Secretary Cabinet Division, and senior officials from relevant ministries.
Copyright Business Recorder, 2026
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