Development Spending Falls 21% Below Target in First 4 Months of FY25

Development expenditure in Pakistan has significantly decreased in the first four months of the current fiscal year. From July to October 2023, the government managed to spend only Rs. 81 billion on development projects, according to documents obtained by Pro Pakistani. Out of the Rs. 1,100 billion allocated for the Federal Public Sector Development Program (PSDP), only Rs. 384.65 billion (target) has been authorized to be spent during the four months. This shows PSDP is currently 21 percent below the intended expenditure in 4MFY25. Of this, Rs. 63 billion was allocated for development projects in federal ministries and divisions, while more than Rs. 25 billion was spent on projects in provinces and specific areas. National Highways received Rs. 18 billion, and Rs. 15.86 billion was directed towards development projects for the Water Resources Division. The Higher Education Commission (HEC) spent over Rs. 4.7 billion on its development projects, while the Railway Division utilized only Rs. 5.25 billion for its projects. The Cabinet Division, which had an allocation of Rs. 50 billion, spent a mere Rs. 1.97 million.