The Ministry of Planning revealed that only 54% of Pakistan’s federal development budget was spent in the first 11 months of the current fiscal year 2024–25. This figure raises serious concerns about the government’s ability to execute planned projects on time.
Between July 2024 and May 2025, the government spent Rs596.61 billion on development projects. However, the approved disbursement for this period was Rs1,035.87 billion, showing a gap of nearly Rs440 billion.
The total revised size of the Public Sector Development Programme (PSDP) for the entire year is Rs1,096 billion, yet less than two-thirds of the funds were utilized with only one month remaining in the fiscal year.
According to official data, federal ministries and divisions spent around Rs437 billion on various infrastructure and social projects. In addition, corporations, such as the National Highway Authority and WAPDA, used Rs159.56 billion from their allocations.
Officials say the slow spending could be due to delays in project approvals, bureaucratic procedures, and cash flow issues. Experts warn that underutilization of development funds affects economic growth, job creation, and public service delivery.