Record 98.46pc Of PSDP Funds Utilized In FY2025

Mohammad Ali (@ChaudhryMAli88) Published September 11, 2025 | 04:20 PM

ISLAMABAD, (UrduPoint / Pakistan Point News - 11th Sep, 2025) A record 98.46 percent of the total authorized funds under the Public Sector Development Programme (PSDP) were utilized across the country during the fiscal year 2024-25, with Rs1.076 trillion spent out of the sanctioned ceiling of Rs1.093 trillion.

According to the latest data of the Ministry of Planning, Development and Special Initiatives, under the PSDP 2024-25, the government had earmarked Rs1.096 trillion, including Rs 870 billion from domestic resources and Rs 226 billion from foreign loans, Wealth Pakistan reported.

The major allocations were made to the Water Resources Division (Rs194.6 billion), the Higher education Commission (Rs 61.6 billion), and the National Health Services Division (Rs 20.7 billion).

In the corporate sector, the National Highway Authority (Rs161.2 billion) and the Power Division (Rs97.8 billion) received the largest shares.

Expenditure trends show that certain sectors not only utilized but, in some cases, exceeded their allocations.

For instance, the Water Resources Division spent Rs 215.1 billion against an allocation of Rs194.

6 billion, while the Power Division utilized Rs120.9 billion, well above its Rs 97.8 billion allocation.

Similarly, the National Highway Authority absorbed Rs148 billion out of Rs161.2 billion, reflecting efficient implementation of infrastructure projects.

The authorization-expenditure gap of less than Rs17 billion demonstrates that 98.46 percent of approved funds were utilized.

This performance would serve as a benchmark for PSDP 2025-26, where the government aims to balance fiscal discipline with development needs across provinces, special areas, and federal ministries.

During July-August FY2026, the PSDP expenditure rose by 23.3 percent to Rs5.3 billion compared to Rs4.3 billion in the same period last year, reflecting stronger development spending momentum.

For FY2026, the Federal PSDP includes 86 foreign-aided projects with an allocation of Rs229 billion, or 23 percent of the total PSDP.

On the development side, the Planning Ministry approved five projects through the CDWP in August 2025, while nine major projects were recommended to the Executive Committee of the National Economic Council (ECNEC).