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Government Approves Rs. 330.43 Billion for PSDP 2025-26 Development Projects

The Ministry of Planning, Development, and Special Initiatives has authorized Rs. 330.43 billion for development projects under the Public Sector Development Programme (PSDP) 2025-26 during the July–October period, accounting for 33% of the total Rs. 1 trillion budget.

The PSDP serves as Pakistan’s main framework for funding federal and provincial development initiatives, covering infrastructure, social sectors, and economic growth projects. Timely fund authorization ensures smooth execution and effective utilization of resources across ministries, divisions, and provinces.

During the first four months of FY 2025-26, actual expenditures stood at Rs. 75.97 billion. The Ministry of Finance has set quarterly fund allocations as 15% for Q1, 20% for Q2, 25% for Q3, and 40% for Q4.

Federal ministries, divisions, and departments received Rs. 219.2 billion out of a total allocation of Rs. 682.26 billion, including Rs. 102 billion in foreign loans, with Rs. 53.93 billion spent so far. The National Highways Authority (NHA) was authorized Rs. 79.44 billion from Rs. 226.98 billion, of which Rs. 20 billion has been utilized. The power sector (NTDC/PEPCO) received Rs. 31.77 billion out of Rs. 90.76 billion, with Rs. 1.867 billion spent.

Provincial and special area projects were authorized Rs. 68 billion from Rs. 253.23 billion, while the Water Resources Division received Rs. 45 billion out of Rs. 133.42 billion. Key allocations also include Rs. 24.635 billion for the Cabinet Division, Rs. 6.5 billion for Federal Education and Professional Training, Rs. 4.168 billion for Defence, Rs. 5.68 billion for IT & Telecom, Rs. 7.85 billion for Railways, Rs. 15.74 billion for the Higher Education Commission, Rs. 1.48 billion for the National Food Security and Research Division, and smaller amounts for the Board of Investment and Climate Change Division.

“Early approvals under PSDP support timely progress of development projects across Pakistan, from infrastructure and power to education and social sectors,” said a Ministry of Planning official.

This fund authorization highlights the government’s focus on strategic development, provincial uplift, and efficient resource utilization to achieve national growth objectives.