ISLAMABAD - Ministries, divisions, and corporations have utilized 75 percent of the funds allocated under the re-revised Rs837 billion Public Sector Development Programme (PSDP) for fiscal year 2025-26, as of June 15, 2026. According to official sources, total spending reached Rs627.321 billion during the period from July 1, 2025, to June 15, 2026, against the revised allocation of Rs837.160 billion.
The federal government had previously imposed a cut of approximately 17 percent, or Rs173 billion, on the PSDP to fund subsidies on petroleum products. The Planning Ministry issued nearly 100 percent authorization for the release of Rs837.143 billion to various ministries, divisions, and corporations. In response, the Finance Ministry released 77 percent, or Rs640.963 billion, of the authorized amount.
Breaking down the utilization, ministries and divisions spent Rs469.468 billion, or 81 percent of their revised allocations of Rs577.149 billion. In contrast, corporations utilized 61 percent, or Rs157.853 billion, of their revised allocations of Rs260.011 billion. The Finance Division’s strategy for releasing development budget funds in FY2025-26 specified quarterly disbursements: 15 percent in Q1, 20 percent in Q2, 25 percent in Q3, and 40 percent in Q4. The ministry was authorized to devise a quarterly sector, project, and division-wise strategy for PSDP fund releases.
High Utilization by Provinces and Special Areas
In rupee terms, the highest utilization was recorded by provinces and special areas, which spent Rs191.065 billion against an authorization of Rs197.365 billion, achieving 97 percent of the total revised allocation of Rs197.383 billion. The Ministry of Water Resources utilized Rs76.881 billion against an authorization of Rs106.640 billion, representing 72 percent of its revised allocation.
Performance of Other Divisions
The Cabinet Division reported that parliamentarian schemes, which had a 100 percent authorization of the revised allocation of Rs63.237 billion, achieved utilization of Rs53.480 billion, or 85 percent. The Inter Provincial Coordination Division utilized 102 percent, or Rs1.046 billion, exceeding its allocation of Rs1.029 billion. SUPARCO fully utilized its revised allocation of Rs4.486 billion, achieving 100 percent. The Higher Education Commission (HEC) utilized 97 percent, or Rs33.802 billion, of its Rs34.905 billion allocation. The Climate Change and Environmental Coordination Division also utilized 97 percent of its Rs2.305 billion allocation.
Corporations' Utilization
Among corporations, the National Highway Authority (NHA) and NTDC/PEPCO together utilized Rs157.652 billion, or 61 percent, of their combined revised allocation of Rs260.010 billion. The Planning Commission authorized the full revised allocation of Rs184.865 billion for NHA, but the authority utilized only Rs103.540 billion, or 56 percent, by June 15. Similarly, NTDC/PEPCO received authorization for the entire revised allocation of Rs75.142 billion but utilized only Rs54.313 billion during the July 1 to June 15 period.
