The Government of Pakistan has authorized Rs. 330.43 billion for development projects under the Public Sector Development Programme (PSDP) 2025-26. This allocation represents 33 percent of the total Rs. 1 trillion PSDP budget for the financial year, covering the July–October 2025 period. Actual spending during this timeframe stood at Rs. 75.97 billion.
According to a notification from the Ministry of Finance, the Government has structured PSDP fund allocations as 15 percent for the first quarter, 20 percent for the second quarter, 25 percent for the third quarter, and 40 percent for the fourth quarter.
Data from the Ministry of Planning shows that Rs. 219.2 billion, or 32 percent of the total budgeted Rs. 682.26 billion for federal ministries, divisions, and departments, has been authorized. This includes Rs. 102 billion in foreign loans. So far, Rs. 53.93 billion has been utilized for these federal projects.
For major infrastructure sectors, Rs. 111.21 billion was allocated for the National Highways Authority (NHA) and the power sector (NTDC/PEPCO) from a total budget of Rs. 317.74 billion. Of this, only Rs. 22 billion has been spent. Specifically, Rs. 79.44 billion was authorized for NHA projects, with Rs. 20 billion used. For the power sector, Rs. 31.77 billion was authorized, with Rs. 1.867 billion utilized during July and August 2025.
Provincial development projects received Rs. 68 billion out of Rs. 253.23 billion, while the Water Resources Division was authorized Rs. 45 billion from Rs. 133.42 billion. Other allocations included the Cabinet Division (Rs. 24.635 billion), the Board of Investment (Rs. 386 million), Climate Change Division (Rs. 974.28 million), Federal Education Division (Rs. 6.5 billion), Defence Division (Rs. 4.168 billion), IT and Telecom Division (Rs. 5.68 billion), and Railway Division (Rs. 7.85 billion).
Additional funding included Rs. 15.74 billion for the Higher Education Commission (HEC) and Rs. 1.48 billion for the National Food Security and Research Division.
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The Government’s authorization of these funds is aimed at accelerating development projects across federal and provincial sectors, ensuring timely completion, and enhancing infrastructure, social services, and public sector initiatives in 2025-26.
