The federal government has spent only 54% (Rs593 billion) of its revised Rs1.096 trillion development budget in the first 11 months of the current fiscal year, according to official data. This slow utilization raises concerns about delayed infrastructure and social sector projects, with just one month remaining before the fiscal year ends on June 30, 2025. Notably, the controversial SDGs Achievement Programme—reserved for ruling-party lawmakers—saw higher spending at 71% (Rs35 billion) of its Rs48 billion allocation. Meanwhile, the government is preparing to allocate Rs1 trillion for next year’s Public Sector Development Programme (PSDP), with the Annual Plan Coordination Committee set to review the proposal.
The original development budget of Rs1.4 trillion, which included Public-Private Partnership projects, was revised downward twice—first to Rs1.25 trillion and then to Rs1.096 trillion. Of the Rs640 billion released so far, Rs470 billion was spent domestically, while foreign aid utilization lagged at just Rs123 billion against the Rs226 billion earmarked. With the fiscal year nearing its end, questions remain about whether the remaining funds will be effectively deployed or lapse, potentially stalling critical development initiatives.
The sluggish spending highlights systemic challenges in project execution, including bureaucratic delays and funding bottlenecks. As the government finalizes next year’s Rs1 trillion PSDP, experts urge reforms to accelerate implementation and ensure transparency, particularly in politically driven allocations like the SDGs Programme. The coming weeks will test the administration’s ability to expedite spending or risk leaving vital infrastructure and welfare projects underfunded.