Pakistan spent Rs103.88 billion on federal development projects from July to October 2026, using just 10.4% of its Rs1 trillion annual budget. The Planning Commission authorised Rs412.29 billion under the Public Sector Development Programme (PSDP). By the end of October, actual spending stood at roughly a quarter of that amount.
The spending figures come as the Finance Division reported an overall fiscal surplus of 0.8% of GDP for July and August. The surplus stood at nearly Rs1.2 trillion, down from 1.7% of GDP a year earlier.
Highways use less than 6% of annual allocation
The Planning Commission’s federal ministries and divisions category spent Rs74.66 billion, about 11% of its Rs682.49 billion annual allocation. The commission had authorised Rs302.91 billion for the category, equivalent to 44.4% of its annual allocation. Corporations spent Rs29.22 billion, or 9.3% of their Rs312.51 billion budget.
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The National Highway Authority spent Rs13.30 billion, or 5.9% of its Rs224.51 billion allocation. The commission had authorised Rs78.58 billion for the authority. Power-sector entities NTDC and PEPCO spent Rs15.92 billion, about 18% of their Rs88 billion budget, against authorisations of Rs30.80 billion.
The Finance Ministry’s release schedule calls for 15% of the annual allocation in the first quarter and 20% in the second. It sets aside 25% for the third quarter and 40% for the final quarter. The schedule gives the government room to cut development spending if revenue falls short of fiscal targets agreed with the International Monetary Fund.
Water leads spending as six divisions record zero
The Water Resources Division led individual divisions, spending Rs18.73 billion, or 18% of its Rs103.09 billion allocation. It also received the largest authorisation among federal divisions, at Rs90.80 billion. Federal Education and Professional Training spent Rs6.88 billion, about 19% of its Rs36.31 billion budget. The health division used Rs6.61 billion, or 41% of its Rs16.06 billion allocation, against authorisations of Rs9.64 billion.
The Higher Education Commission spent Rs4.71 billion of its Rs46 billion allocation. Railways used Rs4.65 billion of Rs40.66 billion. The Planning Division itself spent Rs2.15 billion of Rs22.63 billion, while the IT and Telecom Division used Rs1.45 billion of Rs19.58 billion.
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Development spending for provinces and special areas, including Azad Kashmir and Gilgit-Baltistan, reached Rs23.81 billion. That represented 10% of the Rs233.39 billion annual allocation, against Rs59.80 billion in authorisations. The Finance Division follows a separate seasonal schedule for releasing funds to the special areas.
The Climate Change Division spent Rs259 million of its Rs2.48 billion allocation. National Food Security and Research used nearly Rs65 million of Rs4.18 billion, about 1.6%. Six divisions recorded zero spending. They were Commerce, Communications excluding the NHA, Kashmir Affairs, Gilgit-Baltistan and SAFRON, Petroleum, Privatisation, and Religious Affairs and Interfaith Harmony.
