By Farooq Awan

Pakistan has spent Rs414.96 billion under the Public Sector Development Programme (PSDP) 2025-26 by the end of March, achieving a utilization rate of 41% of the total development allocation.

According to the Monthly Development Update (April 2026) issued by the Ministry of Planning, Development and Special Initiatives, ministries and divisions sanctioned Rs437 billion, against which reported expenditure stood at Rs415 billion under the SAP system.

The report noted that the total size of the PSDP for FY2025-26 stands at Rs1,000 billion, reflecting the scale of federal development spending across key sectors.

Sector-wise data showed varying levels of utilization across different areas of the economy. Transport and communication, along with infrastructure-related sectors, accounted for a significant share of development spending.

Water and energy sectors also recorded notable allocations and expenditures, highlighting continued investment in critical infrastructure to support economic activity and long-term growth.

In the social sectors, allocations were directed towards health, education, and nutrition, with spending aimed at improving service delivery and human development outcomes.

The report further indicated that development spending remains a key policy tool for supporting economic growth, improving infrastructure, and addressing regional disparities

At the same time, the document highlighted that fiscal constraints and external pressures have influenced the pace and composition of development expenditure during the current fiscal year.

Despite these challenges, the government has continued to prioritize ongoing and high-impact projects, ensuring that available resources are directed toward areas with the greatest economic and social returns.

The report emphasized that effective monitoring and timely release of funds remain critical for achieving development targets and improving utilization rates in the remaining months of the fiscal year.

Overall, the spending pattern reflects a continued commitment to advancing priority development projects, while maintaining fiscal discipline amid a challenging economic environment.

Credit: INP-WealthPk