The federal government has only spent 54% of its revised Rs1.096 trillion development budget in the first 11 months of fiscal year 2024–25. So far, Rs593 billion has been utilised, raising concerns as the financial year ends on June 30, 2025. The underutilisation reflects a persistent challenge in executing planned development schemes on time.
Despite slow overall progress, the SDGs Achievement Programme, which benefits members of the ruling coalition, has consumed 71% of its Rs48 billion allocation. This amounts to Rs35 billion, making it one of the most utilised components of the Public Sector Development Programme (PSDP). Other development projects have lagged behind due to delayed funding releases and administrative hurdles.
For the next fiscal year (2025–26), the government plans to allocate Rs1 trillion for the PSDP. This is far below the Rs3 trillion requested by ministries and also less than the Rs1.6 trillion recommended by the Planning Ministry to complete ongoing projects. Initially, the Finance Ministry had proposed a cap of Rs921 billion, which was later increased.
In the current fiscal year, Rs640 billion was authorised for development spending, including Rs470 billion for domestic funding and Rs226 billion as the foreign exchange component. However, only Rs123 billion of the foreign funding has been used so far. Officials say slow releases in the first half of the year affected project momentum across multiple sectors.
With just one month remaining, it’s unclear how much of the remaining budget will be spent before the fiscal year closes. Experts warn that continued underutilisation could delay critical infrastructure and social development goals, unless spending procedures are reformed and fund disbursements are expedited.