ISLAMABAD: A document from the Ministry of Planning has revealed that only Rs 76 billion were spent on development projects between July and October, representing just 7.6 percent of the total Public Sector Development Programme (PSDP) for the current fiscal year.
According to the official report, the government could not achieve its fund release target for the first half of the year. Under the July-to-December release strategy, 35 percent authorization was planned, but the target remained unmet. Six ministries, including the Cabinet Division, Commerce, Establishment, Parliamentary Affairs, Petroleum, and Religious Affairs, received no funds at all for development projects during this period.
The Cabinet Division had an allocation of Rs 70 billion, Parliamentary Affairs Rs 2.5 billion, Petroleum Division Rs 710 million, Establishment Division Rs 490 million, Religious Affairs Rs 650 million, and the Commerce Division Rs 50 million — yet none of these ministries received any development funds from July to October.
During the same period, about Rs 54 billion were released for 34 ministries and divisions, while Rs 22 billion went to corporations, including the National Highway Authority (NHA) and NTDC/PEPCO. Despite authorizing only 33 percent of funds instead of 35 percent, actual development spending stood at just 24 percent, showing a significant shortfall. Out of the Rs 1 trillion development budget, only 7.6 percent was utilized in the first four months, indicating delays in both fund authorization and expenditure.
Between July and October, the Defence Division utilised Rs 1.08 billion, Special Areas Rs 16.48 billion, Housing and Works Rs 5.2 billion, Law and Justice Rs 260 million, the Planning Ministry Rs 3.9 billion, Railways Division Rs 4.32 billion, and Water Resources Rs 13.55 billion. The NHA received the highest share with Rs 20 billion released for its ongoing projects.
Under the fund release strategy, the government had planned to authorize Rs 350 billion by December but approved only Rs 330 billion. Even in the first quarter, the utilization of 15 percent of development funds remained incomplete. Officials attributed the low spending to flood-related damages and reduced revenue collection, which led to fewer funds being allocated for development schemes.
For the July-to-December period, Rs 219 billion have been earmarked for 36 ministries and divisions, while Rs 111 billion were allocated for the NHA and Power Division (NTDC/PEPCO) under the 35 percent release plan.
