PSDP spending hits 36% at Rs361 billion in eight months as disbursements to MNAs’ schemes rise

Pakistan’s utilisation of the Public Sector Development Programme (PSDP) reached 36% to Rs361 billion during the first eight months (July–February) of the current fiscal year, out of the Rs1 trillion annual allocation, largely driven by increased disbursements to parliamentarians’ development schemes under the Sustainable Development Goals Achievement Programme (SAP), Dawn reported.

According to the Ministry of Planning and Development, ministries and divisions had authorised Rs403 billion by Feb 28, against which Rs361 billion had been reported as actual expenditure.

The government began releasing funds for these schemes after the first five months of the fiscal year. By the end of February, the Planning Commission had authorised Rs57.23 billion — about 82% of the programme’s annual allocation of Rs70.26 billion — while Rs39.5 billion, or around 56%, had been spent.

Officials said most of these funds were authorised and utilised within about four months.

Despite the improvement compared with last year, overall spending remained below the schedule approved for the fiscal year.

Under the budget release mechanism set by the Ministry of Finance, 15% of the PSDP allocation is to be released in the first quarter, followed by 20% in the second quarter, 25% in the third quarter and the remaining 40% in the final quarter.

Based on this formula, PSDP expenditure should have reached about Rs560 billion — or 56% of the allocation — by February.

In comparison, PSDP spending during the same period of the previous fiscal year stood at Rs312.3 billion, representing 28.4% of the Rs1.1 trillion allocation.

Regional development spending remained limited. Azad Jammu and Kashmir and Gilgit-Baltistan together spent Rs90.6 billion out of their annual allocation of Rs249.2 billion, representing 36% utilisation.

Sector-wise, the infrastructure sector recorded expenditure of Rs214.74 billion during the eight-month period, accounting for 35% of its allocation of Rs614.72 billion.

Within this sector, transport and communications received the largest allocation of Rs325.62 billion but utilised Rs95 billion, or 29%.

The energy sector spent Rs40.6 billion against an allocation of Rs123 billion, reaching 33% utilisation.

The water sector reported spending of Rs44.9 billion out of Rs97.8 billion, achieving around 46% utilisation.

Physical planning and housing recorded the highest utilisation rate in the infrastructure category, spending Rs34.2 billion, which represented 50% of its allocation of Rs68.6 billion.

In the social sector, Rs178.25 billion was allocated overall.

Education, including higher education, received Rs65.3 billion and spent Rs30.4 billion, representing about 46% utilisation.

The health and nutrition sector utilised Rs3.7 billion out of its Rs16.54 billion allocation, amounting to 22%.

Other smaller sectors spent Rs5.1 billion against an allocation of Rs26.4 billion, representing 19% utilisation.

Spending in the governance sector reached Rs3.2 billion against its allocation of Rs10.3 billion, recording 31% progress.

The science and information technology sector utilised Rs10.3 billion, accounting for 24% of its allocation of Rs42.74 billion.

The food and agriculture sector reported expenditure of Rs1.2 billion out of Rs3.9 billion, reaching 31% utilisation.

Across all federal ministries and divisions, total spending stood at Rs254.55 billion, representing 37% of their combined allocation of Rs686 billion.

Two major corporations — the National Highway Authority (NHA) and power sector entities — together spent Rs106.7 billion against their combined allocation of Rs314 billion, reflecting utilisation of about 34%.

Of this amount, the NHA spent Rs72 billion out of Rs223.4 billion, or 32%, while power sector corporations utilised Rs34.7 billion from their allocation of Rs90.7 billion, reaching 38%.

The PSDP portfolio also includes 86 foreign-funded projects with a total cost of Rs4.2 trillion.

Among these, 15 projects are fully financed by foreign sources, while the remaining 71 require both foreign and local funding.

For the current fiscal year, a rupee cover of Rs229 billion has been allocated for these projects.

Official records show that ministries and divisions sanctioned Rs85.7 billion and reported expenditure of Rs63.5 billion against this allocation.