Pakistan spent just Rs103.87 billion on federal development projects in the first four months of fiscal year 2026-27, only 10.4 per cent of the Rs1 trillion Public Sector Development Programme (PSDP), according to data released by the Ministry of Planning, Development and Special Initiatives on November 11, 2026.
What happened?
The Planning Commission authorised Rs412.3 billion for development projects between July and October 2026, but actual spending reached only about a quarter of the authorised amount. The slow pace of utilisation came even though the government recorded a 0.8 per cent budget surplus in the first quarter of the fiscal year.
Key details
- Federal ministries and divisions spent Rs74.65 billion against their combined annual allocation of Rs682.48 billion, about 11 per cent.
- Government corporations used Rs29.22 billion of their Rs312.52 billion allocation, or 9.4 per cent.
- Development spending in the provinces and special areas totalled Rs23.8 billion against an allocation of Rs233.39 billion, about 10 per cent.
- The National Highway Authority, the largest single recipient, spent Rs13.29 billion of its Rs224.51 billion allocation.
- Under the government’s release mechanism, 15 per cent of the annual allocation is to be released in the first quarter, 20 per cent in the second, 25 per cent in the third and the remainder in the final quarter.
- The annual PSDP also includes Rs4 billion for project liabilities and Rs1 billion for new initiatives under CPEC 2.0.
What it means for people in Pakistan
Development spending pays for roads, power projects, water schemes and other public infrastructure, so a slow start means fewer projects reaching people on the ground. With eight months of the fiscal year still to run, spending will need to accelerate sharply if the full Rs1 trillion allocation is to be used.
