Pakistan spends Rs448 billion out of Rs1.1 trillion development budget in three quarters

Pakistan’s federal government has so far spent Rs448.64 billion on development projects during the first nine months of the Public Sector Development Programme (PSDP) for FY 2024-25, representing 50.2% of the total allocated budget of Rs1.1 trillion for the period. 

According to official data, the Ministry of Planning, Development and Special Initiatives has authorised a total of Rs894.1 billion (81.28%) out of the total allocation for PSDP FY2024-25 in nine months.

Key sectors benefiting from this spending include water supply and management, social welfare, and energy. The finance ministry has emphasized the importance of these projects in improving the overall socio-economic conditions across the country, particularly in underserved regions.

The breakdown shows that for the first quarter, the government had authorized 15% of the total funds, followed by 20% in the second quarter, 25% in the third quarter, and 40% in the fourth quarter.

The Planning Ministry has allocated Rs638.23 billion for federal ministries, divisions, and other departments, with Rs339.2 billion already spent. Significant portions of this fund have been allocated to key infrastructure projects. 

For example, Rs225.85 billion out of Rs255.85 billion budgeted for the National Highways Authority (NHA) and the Power Division (NTDC/PEPCO) have been authorized, with Rs109.44 billion spent so far.

Development projects in the Water Resources Division have been fully authorized with Rs169.6 billion allocated, while Rs72.55 billion has already been spent. The Higher Education Commission (HEC) received Rs56.94 billion for its projects, with Rs24.88 billion spent, and the Railway Division’s projects have received Rs22 billion of the Rs35 billion allocated, with Rs20.98 billion spent.

Other sectors receiving substantial allocations include the Climate Change Division, the Federal Education and Professional Training Division, and the National Health Services, Regulations, and Coordination Division. Smaller amounts have been assigned to sectors such as Defense, Information Technology, and Petroleum.

The ministry has also ensured that funds are spread across various divisions, including the Ministry of Communications, Housing and Works, and the Law and Justice Division, among others. This comprehensive funding effort aims to accelerate development across multiple sectors, fostering long-term growth and addressing pressing infrastructure needs.