Islamabad, Dec 11: Pakistan’s development expenditure has experienced a significant decline in the first four months of the current fiscal year, with only Rs. 81 billion spent on development projects from July to October 2023. This is well below the Rs. 1,100 billion allocated for the Federal Public Sector Development Program (PSDP), of which only Rs. 384.65 billion was authorized for spending during this period. As a result, PSDP expenditure stands at 21% below the intended target for the first four months of FY25.
The breakdown reveals that Rs. 63 billion was allocated for federal ministries and divisions, while over Rs. 25 billion was directed towards projects in provinces and specific regions. The National Highways sector received Rs. 18 billion, and Rs. 15.86 billion was allocated to the Water Resources Division. Other notable allocations include Rs. 4.7 billion for the Higher Education Commission (HEC) and Rs. 5.25 billion for the Railway Division’s projects.
One of the most alarming aspects of this expenditure report is the Cabinet Division, which had an allocation of Rs. 50 billion but utilized a meager Rs. 1.97 million, highlighting inefficiencies in the use of development funds.
This reduction in development expenditure comes at a critical time, as Pakistan faces numerous economic and infrastructure challenges. The slower-than-expected spending could affect the progress of vital development initiatives, impacting sectors such as education, transportation, and water resources.
