By Ayesha Saba
ISLAMABAD, October 20 (Wealth Pakistan): Public Sector Development Programme (PSDP) expenditure reached Rs40.3 billion in the first quarter of FY2025-26. The spending marks a 16.09 percent increase from Rs34.8 billion utilized during the same period last year.
Infrastructure sector sees major spending
According to the Ministry of Planning, Development and Special Initiatives’ Monthly Development Update for October, the infrastructure sector recorded Rs17.3 billion in spending as of September 30, 2025. Within this category, the transport and communication sector utilized Rs2.6 billion.
The energy sector and the physical planning and housing sector used Rs1.5 billion and Rs2.4 billion, respectively. Their total allocations for the year stand at Rs122 billion and Rs102.4 billion. The water sector, which also has an allocation of Rs102.4 billion, spent Rs10.8 billion during the same period.
Social sector allocations and spending
For FY2025-26, the social sector received Rs167.1 billion, representing 17 percent of the total PSDP outlay. Of this, Rs58.5 billion was earmarked for education, including the Higher Education Commission, which spent Rs4.4 billion during the quarter.
The health and nutrition sector utilized Rs0.1 billion against its allocation of Rs16.8 billion. Under the “Others” category, Rs21.7 billion was set aside, and Rs0.9 billion has been spent so far.
Digital transformation remains a focus
The Science and IT sector received an allocation of Rs37.6 billion, reflecting the government’s focus on digital transformation and research. The sector has already spent Rs11 billion, showing steady progress toward building Pakistan’s innovation ecosystem.
Industrial and governance sectors
The industries and production sector received Rs7.9 billion, including Rs5.1 billion for food and agriculture and Rs2.9 billion for industrial development. Expenditure stood at Rs0.3 billion for agriculture and Rs0.1 billion for industrial projects.
The governance sector, aimed at improving transparency and efficiency, was allocated Rs11.2 billion. Spending during the quarter reached Rs0.5 billion.
Foreign-assisted projects
The report highlights that 86 foreign-assisted projects have been included in the PSDP for FY2025-26, with a total allocation of Rs229 billion. This represents 23 percent of the overall PSDP. As of September 30, 2025, expenditures under this component stood at Rs3.3 billion.
According to the report, these disbursements followed revised accounting procedures from the Finance Division to ensure transparency and efficiency in managing foreign-funded projects.
Government focus on growth and transparency
The first-quarter performance shows the government’s commitment to inclusive growth and infrastructure modernization. It also reflects efforts to maintain fiscal discipline while promoting education, technology, and governance reforms.
Progress in these priority areas signals steady movement toward achieving the goals set in the national development agenda for FY2025-26.