ISLAMABAD, Nov 16 (Wealth Pakistan): Pakistan authorised development spending of Rs330.43 billion during the first four months of FY2025-26. This represents 33 percent of the total Public Sector Development Programme (PSDP) allocation for the year. The Monthly Development Update for November 2025 reports that the Ministry of Planning also achieved savings of Rs2.2 billion through its cost rationalisation exercise.
PSDP Allocations and Early Spending Pattern
The total PSDP size for FY2025-26 stands at Rs1,000 billion. Up to the end of October 2025, ministries and implementing agencies received authorisations worth Rs330.43 billion. This enabled them to begin work on priority development projects across the country.
A comparison with last year shows that Rs81.9 billion had been spent during July–October 2024-25, while expenditure in the same period this year stood at Rs76.0 billion.
Infrastructure Continues to Dominate PSDP
Infrastructure remained the largest component of the PSDP with a 63 percent share. It received Rs626.77 billion, of which Rs46.12 billion was utilised by the end of October.
The transport and communication sector was allocated Rs333.48 billion and used Rs25.93 billion in the first four months. Energy projects received Rs122.65 billion and utilised Rs2.54 billion. The physical planning and housing sector spent Rs4.69 billion out of its Rs72.73 billion allocation. Water projects accounted for Rs12.95 billion in expenditures against a total allocation of Rs97.90 billion.
Social Sector and Governance Expenditures
The social sector received Rs169.31 billion, or 17 percent of the PSDP. Education, including the Higher Education Commission, used Rs8.97 billion out of its Rs60.75 billion allocation.
The health and nutrition sector spent Rs0.14 billion, while the “others” category used Rs1.51 billion out of Rs21.71 billion.
The governance sector utilised Rs0.65 billion out of its Rs11.17 billion allocation. Science and IT projects received Rs37.59 billion and spent Rs1.69 billion. Industries and production saw expenditures of Rs0.48 billion in food and agriculture and Rs0.15 billion in manufacturing.
Funding for Special Areas and Merged Districts
Special areas, including Azad Jammu and Kashmir and Gilgit-Baltistan, were allocated Rs81.80 billion. Development schemes in the merged districts of Khyber Pakhtunkhwa received Rs65.44 billion under the Accelerated Implementation Program. A Joint Steering Committee chaired by the KP Chief Minister continues to provide oversight.
Role of Foreign-Funded Projects
The PSDP includes 86 foreign-funded projects with a combined foreign cost of Rs4.2 trillion. Fifteen are fully financed by development partners, while the remaining operate on a cost-sharing model.
Between July and October 2025, ministries sanctioned Rs25.1 billion in rupee cover for foreign-funded schemes, with expenditures amounting to Rs6.3 billion.
Releases and Expenditures by Development Partners
Releases included Rs4.03 billion from the World Bank, Rs4.12 billion from the Asian Development Bank, Rs1.75 billion from Korea, Rs15.02 billion from the United States and Rs0.014 billion from China.
Expenditures stood at Rs4.65 billion on World Bank–supported projects, Rs0.66 billion on US-funded initiatives, Rs0.32 billion on Korea-financed schemes, Rs0.07 billion on China-funded projects and Rs0.007 billion on Asian Development Bank programmes.
Monitoring, Evaluation and Cost Rationalisation
During October, 22 projects were monitored against a target of 19, while seven were evaluated against a target of eight.
By cutting non-essential components between July and September 2025, the Ministry reduced costs from Rs1,424.9 billion to Rs1,422.7 billion, saving Rs2.2 billion.
Government’s Priority on Efficient Spending
According to the report, the government remains committed to ensuring that PSDP spending supports national priorities, improves service delivery and generates high-impact outcomes across sectors.