ISLAMABAD: The government spent only Rs 76 billion on development projects between July and October 2025. This represents just 7.6 percent of the total Public Sector Development Programme (PSDP) budget. Officials cited delays in fund release and flood-related damages as reasons for the slow spending.
According to the Ministry of Planning, the government planned to authorize 35 percent of the development budget by December.
However, only 33 percent was approved, leaving many ministries without funds for their projects.
Six key ministries, including Cabinet, Commerce, Establishment, Parliamentary Affairs, Petroleum, and Religious Affairs, received no development funds.
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During the period, Rs 54 billion were released to 34 ministries and divisions, while Rs 22 billion went to corporations. The National Highway Authority (NHA) received the highest share, Rs 20 billion, for ongoing infrastructure projects.
Other ministries, including Defence, Housing, Railways, Water Resources, and Planning, used a small fraction of their allocated funds.
Officials noted that low revenue collection also contributed to the slow utilization of development funds.
The government initially planned Rs 350 billion for release by December but approved only Rs 330 billion.
Delays in fund authorization and expenditure mean many development schemes remain incomplete, affecting national growth plans.
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Experts warn that continued underutilization could impact infrastructure projects and public services.
They urged timely allocation and monitoring to ensure the full budget benefits the population.
The government is expected to revise spending strategies for the remaining fiscal year to meet PSDP targets.