The Ministry of Planning and Development has authorised the release of Rs141 billion for federal ministries and divisions under the Public Sector Development Programme (PSDP) for the first quarter of the current fiscal year.
According to the Ministry’s Monthly Development Update for August 2025, the release is part of the strategy to ensure steady project execution, with a focus on timely fund disbursements. For Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan, funds will be provided biannually due to seasonal constraints.
The Ministry of Finance has outlined a new disbursement strategy for the fiscal year, allocating 15% of the Rs1 trillion PSDP for the first quarter, followed by 20% in the second, 25% in the third, and the remaining 40% in the last quarter. The Ministry of Planning, however, has challenged the low first-quarter release, suggesting an increase to 20% to improve project off-take.
The Finance Minister has been directed to adjust the disbursement strategy to allow more funds in the first quarter and reduce the final quarter’s allocation, ensuring smoother project implementation throughout the year.
Minister Ahsan Iqbal highlighted the positive economic indicators, including GDP growth, easing inflation, and a current account surplus of $2.1 billion for FY25. Exports in July grew by 17%, while remittances rose by 7.4%, signaling confidence in the government’s economic management.
He also emphasized improved fiscal discipline, with the deficit reduced to 5.4% of GDP, and the historic utilization of Rs1.068 trillion for development projects. Additionally, Iqbal noted the launch of the Remote Sensing Satellite, Pakistan’s first astronaut mission in 2026, and new data from the 7th Agriculture Census, which will support food security and rural development policies.
The Minister reiterated the government’s commitment to accelerating technology-driven projects, with a focus on exports, climate resilience, and inclusive development.
