The federal government has reduced the development budget by Rs. 100 billion in a move to keep petrol and diesel prices steady. The Public Sector Development Program (PSDP), originally allocated Rs. 1 trillion for the fiscal year 2025–26, now stands at Rs. 900 billion.
Federal Minister for Planning Ahsan Iqbal confirmed that a uniform 10 percent cut has been applied across all development projects. The decision, made in consultation with the Ministry of Finance, aims to control non-essential expenditures amid global economic tensions and ongoing IMF review talks.
So far, only Rs. 361 billion or 36 percent of the allocated PSDP funds have been utilized during the first eight months of the fiscal year, highlighting slow budget execution. The government hopes that this budget adjustment will prevent any immediate rise in petroleum prices, which remain a major concern for consumers.
