ISLAMABAD — ISLAMABAD: The country’s Public Sector Development Programme (PSDP) spending in the first four months of the current fiscal year struggled at only 10 per cent of the annual allocation. Total PSDP spending in the first four months (July-October) of 2026-27 amounted to Rs103.87bn — 10.4pc of the Rs1trillion allocation, according to the Ministry of Planning and Development.
Actual utilisation was far lower than the Rs412.3bn authorised by the Planning Commission. This alarming spending pattern on public-interest projects, which is affecting living standards and economic growth, has emerged despite a healthy 0.8pc budget surplus posted in the first quarter of the year. Latest data released by the Ministry of Planning and Development showed that, excluding corporations, total PSDP expenditure by about 33 ministries and divisions amounted to a meagre Rs74.65bn in the first four months, or about 11pc of the total allocation of Rs682bn.
The corporations — chiefly the power sector and the National Highways Authority — together spent Rs29bn or 9.3pc against their budget allocation of Rs313bn for the whole year. Ministries, divisions utilise just Rs103.87bn in July-October against Rs1tr allocation The NHA could utilise only 5.8pc or Rs13.3bn in four months against its annual allocation of Rs225bn. The power sector was able to use Rs16bn or 18pc of its Rs98bn allocation.