Development spending just 10.4pc of annual allocation in first four months of FY27, despite budget surplus

In the first four months of fiscal year 2026-27, the Public Sector Development Programme (PSDP) spending in Pakistan amounted to only 10.4% of the total Rs1 trillion allocation, according to the Ministry of Planning and Development. This low spending was despite a healthy 0.8% budget surplus in the first quarter. Excluding corporations, total PSDP expenditure by about 33 ministries and divisions was a meagre Rs74.65bn, or about 11% of the total allocation of Rs682bn.

The power sector and the National Highways Authority spent Rs29bn or 9.3% of their budget allocation of Rs313bn for the whole year. The NHA could utilise only 5.8% or Rs13.3bn in four months against its annual allocation of Rs225bn, while the power sector was able to use Rs16bn or 18% of its Rs98bn allocation. Only eight ministries managed to spend more than Rs1bn each in the first four months, with the Water Resources Division leading at 18% of its Rs103bn annual allocation.

Despite the budget surplus, the climate change division and National Food Security ministry spent only 10.4% and less than 1.5% of their respective allocations.