Qudsia Bano

Federal development spending reached Rs 92 billion by the end of November 2025 out of Rs 196 billion sanctioned to ministries and divisions, with infrastructure projects accounting for the bulk of utilisation during the first five months of FY 2025-26, according to the Monthly Development Update – December 2025 released by the Ministry of Planning, Development and Special Initiatives.

The report states that the total size of the Public Sector Development Programme (PSDP) for FY 2025-26 stands at Rs 1,000 billion. Of this, Rs 196 billion had been authorised for release by 30 November, against which ministries and divisions recorded expenditure of Rs 92 billion. The Ministry notes that PSDP utilisation remained modest due to lower spending by provinces, special areas and the Ministry of Railways during the review period.

According to the report, the infrastructure sector received 63 percent of the total PSDP allocation for the year, amounting to Rs 626.767 billion. Out of this, Rs 55.238 billion had been utilised by 30 November. Within the infrastructure portfolio, the transport and communications sector received the largest share, with an allocation of Rs 333.484 billion and an expenditure of Rs 30.433 billion during July–November.

The energy sector recorded utilisation of Rs 3.517 billion against its allocation of Rs 122.653 billion, while the physical planning and housing sector reported expenditure of Rs 7.006 billion out of its Rs 72.725 billion allocation. The water resources sector posted an expenditure of Rs 14.281 billion against its allocation of Rs 97.903 billion for the current fiscal year.

The social sector received Rs 169.309 billion in allocations. Of this, the education sector, covering both basic and higher education, was allocated Rs 60.753 billion and utilised Rs 12.292 billion. The health and nutrition sector spent Rs 0.211 billion out of its Rs 16.842 billion allocation. The report further states that Rs 21.712 billion was allocated for “Others,” with Rs 2.122 billion spent during the reporting period.

Governance-related projects were allocated Rs 11.167 billion, out of which Rs 1.015 billion had been utilised. The science and information technology sector recorded expenditure of Rs 3.619 billion against a total allocation of Rs 37.586 billion, reflecting priority initiatives linked to digital transformation and applied research.

The industrial and production sector received a combined allocation of Rs 7.925 billion, including Rs 5.069 billion for food and agriculture and Rs 2.856 billion for industries. By November, expenditure stood at Rs 0.605 billion for food and agriculture and Rs 0.227 billion for industries.

The report also notes that special areas, Azad Jammu and Kashmir and Gilgit-Baltistan, received an allocation of Rs 81.800 billion, while the merged districts in Khyber Pakhtunkhwa were allocated Rs 65.444 billion.

Overall, the Ministry states that development spending during July-November FY26 was led primarily by infrastructure, with the social, governance, IT, and industrial sectors recording varying degrees of utilisation during the period under review.

Credit: INP-WealthPk