ISLAMABAD: Pakistan achieved a record PSDP fund utilization of 98.46 percent in the fiscal year 2024-25. The government spent Rs1.076 trillion out of the sanctioned ceiling of Rs1.093 trillion. This achievement highlights the strong commitment to development and efficient PSDP fund utilization across the country.
According to the Ministry of Planning, Development, and Special Initiatives, the PSDP 2024-25 had a total allocation of Rs1.096 trillion. This included Rs870 billion from domestic resources and Rs226 billion from foreign loans, Wealth Pakistan reported.
The largest allocations went to the Water Resources Division (Rs194.6 billion), the Higher Education Commission (Rs61.6 billion), and the National Health Services Division (Rs20.7 billion). In the corporate sector, the National Highway Authority received Rs161.2 billion, and the Power Division got Rs97.8 billion. These allocations reflect careful planning for PSDP fund utilization in major sectors.
Expenditure trends show that some sectors exceeded their allocations. For example, the Water Resources Division spent Rs215.1 billion, above its Rs194.6 billion allocation. Similarly, the Power Division utilized Rs120.9 billion, surpassing its Rs97.8 billion allocation. Meanwhile, the National Highway Authority spent Rs148 billion of its Rs161.2 billion allocation, demonstrating efficient project implementation and strong PSDP fund utilization.
The authorization-expenditure gap remained below Rs17 billion. This confirms that 98.46 percent of approved funds were used. Consequently, this performance sets a benchmark for PSDP 2025-26. The government now aims to balance fiscal discipline with development needs across provinces, special areas, and federal ministries.
During July-August FY2026, PSDP expenditure rose by 23.3 percent to Rs5.3 billion, compared to Rs4.3 billion in the same period last year. This increase reflects stronger development spending momentum and continued emphasis on PSDP fund utilization in priority sectors.
For FY2026, the Federal PSDP includes 86 foreign-aided projects with a total 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. Additionally, nine major projects were recommended to the Executive Committee of the National Economic Council (ECNEC), continuing the trend of effective PSDP fund utilization.
