The coalition government has spent only Rs424 billion—less than 40% of the revised Public Sector Development Programme (PSDP) for the current fiscal year, significantly slowing down progress on hundreds of development projects across Pakistan, including in provinces and the merged districts of Khyber Pakhtunkhwa (KP).
According to official Planning Commission data, from July to mid-April, just 39% of the Rs1.1 trillion budget was utilized. This falls short of the 60% spending target for the first nine months, leaving a gap of Rs260 billion despite approval to spend Rs890 billion.
The under-spending is impacting construction timelines, cash flows, and public welfare schemes. Key areas like Balochistan, KP’s merged districts, and other provinces are facing major setbacks, while certain regions and sectors—like Azad Jammu & Kashmir (AJK), Gilgit-Baltistan (GB), parliamentarian schemes, and SUPARCO—have seen higher-than-average allocations being used.
Projects in merged KP districts, despite being highly underdeveloped and affected by insecurity, received only 23% of their allocated Rs70 billion. Provincial projects saw even less—just 20% of Rs132 billion spent. Meanwhile, AJK and GB received 76% of their allocations, indicating a clear disparity in fund distribution.
The Finance Ministry has reportedly withheld funds due to IMF-related commitments, even though the Planning Commission had authorized the spending. However, funding for parliamentarians’ schemes remains largely unaffected, with Rs35 billion of the Rs50 billion budget already disbursed—nearly 70%.
Other critical sectors like the Water Resources Ministry (42% spent), National Highway Authority (33%), and the Power Division (just over 50%) are also lagging behind.
The lack of timely funding threatens to derail long-term development goals, especially in underserved and conflict-hit regions, highlighting the urgent need for fiscal discipline, transparent fund allocation, and regional equity in Pakistan’s development priorities.
