Islamabad: The report on PSDP (Public Sector Development Programme) spending reveals a concerning underutilization of development funds by the federal government in the first 10 months (July–April) of FY2025:
There is only 41% of PSDP utilised in ten months, which is quite alarming. It means now in two months, 60% of the funds would be used up. This would make these spending with poor quality of results for PSDP.
PSDP are these funds which brings growth and employment in the economy.
Overall Spending:
- Only Rs448.6 billion out of a revised allocation of Rs1.1 trillion was spent — roughly 41%.
- This falls significantly short of the expected 73% benchmark (around Rs805bn) by April under the finance ministry’s quarterly release mechanism.
- Authorized vs. Actual Spending:
- The Planning Commission authorized Rs638bn, but only Rs339bn was actually spent by federal ministries.
- Provincial and Special Areas Spending:
- Out of Rs277bn allocated, only Rs100bn (36%) was spent in regions like the merged districts of KP, AJK, and GB.
- Performance by Major Entities:
- Water Resources Division: Rs72.5bn spent out of Rs170bn.
- NHA & NTDC: Rs109.4bn spent out of Rs255bn.
- Power Sector: Rs53bn spent out of Rs94.5bn (55%).
- Climate Change Division: Rs1.5bn out of Rs5.256bn.
- Planning Commission itself: Spent Rs3.85bn of Rs19bn.
- Zero Spending:
- Ministries of Commerce, Communications, Narcotics Control, Religious Affairs, and SIFC did not spend any allocated funds.
- Exception – Parliamentarians’ Schemes:
- These schemes exceeded expectations, with Rs35bn spent versus the revised Rs25bn allocation.
- Early Fund Surrender Directive:
- Finance ministry ordered surrender of unspent funds by April 30, a month earlier than usual, following PAC directives.
The large underspending suggests significant inefficiencies in project execution, bureaucratic delays, or prioritization issues.
- Early surrender of funds, a break from tradition, could further complicate end-of-year implementation for ministries and departments.
- Parliamentarian schemes outperforming others raises questions about prioritization based on political considerations over national development goals.
