Abdul Ghani

The Ministry of Planning, Development and Special Initiatives saved Rs5.5 billion during the first half of the current fiscal year through cost rationalization measures aimed at improving the efficiency and effectiveness of public development spending.

According to the Monthly Development Update (February 2026) issued by the Economic Policy Wing, a detailed review of development projects submitted by federal and provincial governments helped eliminate non-essential and overlapping components, generating cumulative savings of Rs5.5 billion during Jul–Dec FY2025-26.

The report notes that Rs1,956.9 million in savings were secured in December alone, contributing significantly to the overall reduction in costs. These measures form part of a broader effort to ensure that limited public resources are directed toward priority projects that deliver tangible socio-economic benefits.

Cost rationalization exercises involved careful scrutiny of project proposals to identify areas where expenditures could be optimized without compromising objectives. By removing redundancies, adjusting scope and streamlining allocations, the Planning Ministry aimed to enhance value for money across the Public Sector Development Programme (PSDP).

The review process is designed to strengthen accountability and efficiency in public investment. Projects that contain overlapping activities, inflated estimates or non-essential elements are revised before funds are released. This helps ensure that government spending remains focused on critical infrastructure and social development needs.

The report highlights that rationalizing costs not only reduces financial waste but also allows savings to be redirected toward higher-impact initiatives. By freeing up resources, authorities can support additional development activities or strengthen ongoing projects without increasing overall expenditure.

Such measures are considered particularly important in a constrained fiscal environment where prudent financial management is essential. Efficient allocation of funds can accelerate project completion, improve service delivery and enhance outcomes for citizens.

The Ministry’s intervention underscores a shift toward results-driven development planning. Instead of merely expanding spending, emphasis is placed on optimizing each rupee invested to achieve measurable progress. This approach aligns with broader goals of transparency and responsible governance in public finance.

The cumulative savings of Rs5.5 billion during the six-month period demonstrate the potential impact of systematic project evaluation. Even relatively small adjustments across multiple schemes can collectively produce significant reductions in costs.

The report suggests that continued monitoring and periodic reviews will remain key to sustaining efficiency gains. Regular assessments help identify emerging issues early and prevent unnecessary expenditures from escalating during project implementation.

By securing billions of rupees in savings through cost rationalization, the Planning Ministry has strengthened the efficiency of development spending and reinforced its commitment to ensuring that public funds are utilized effectively to support national priorities.

Credit: INP-WealthPk