PSDP Authorisations Outpace Actual Development Spending

The Ministry of Planning, Development and Special Initiatives has authorised Rs555.5 billion — representing 55.55 percent of the total Rs1 trillion allocation under the Public Sector Development Programme (PSDP) 2025–26 — during the July–January period. However, actual expenditure during this timeframe amounted to Rs272.78 billion, equivalent to 27.28 percent of the overall allocation, reflecting a notable gap between authorisations and utilisation.

In accordance with a notification issued by the Ministry of Finance, the release of development funds was structured on a phased quarterly basis: 15 percent in the first quarter, 20 percent in the second, 25 percent in the third, and 40 percent earmarked for the fourth quarter of the fiscal year.

Data published by the Planning Ministry indicates that Rs390.66 billion (39 percent) was authorised for federal ministries, divisions, and associated departments against a total allocation of Rs685.96 billion, inclusive of Rs102 billion in foreign loan components. Of this amount, Rs206.1 billion has been expended to date.

For the National Highways Authority (NHA) and the power sector entities — NTDC and PEPCO — Rs164.8 billion was authorised against a combined allocation of Rs314.04 billion. Despite this, actual utilisation during July–January stood at Rs66.72 billion.

Specifically, NHA projects were allocated Rs223.28 billion, of which Rs133.031 billion has been authorised and Rs61.17 billion disbursed. Within the power sector, Rs31.77 billion was authorised out of a total allocation of Rs90.76 billion.

For provincial governments and Special Areas, Rs66.85 billion was authorised against an allocation of Rs129.95 billion. The Water Resources Division received authorisation amounting to Rs77.31 billion out of Rs128.798 billion allocated for the fiscal year.

Additional authorisations during the period include Rs39.48 billion out of Rs70.388 billion for the Cabinet Division; Rs386 million for the Board of Investment; Rs1.31 billion for the Climate Change and Environmental Coordination Division; Rs12.148 billion for the Federal Education and Professional Training Division; Rs6.566 billion for the Defence Division; Rs7.9 billion for the Information Technology and Telecom Division; and Rs13.449 billion for the Railway Division.

The data reflects ongoing fiscal management measures under the PSDP framework, while highlighting the disparity between sanctioned funds and actual project execution during the reporting period.