Federal Government Faces Severe Fund Shortage — Only 7.6% of Development Budget Utilized in Four Months
ISLAMABAD:The federal government is facing a serious financial crunch, with only **Rs 76 billion** spent on development projects during the first four months of the current fiscal year — just **7.6%** of the **Rs 1,000 billion** annual Public Sector Development Programme (PSDP).
According to official documents, despite the approval of **Rs 330.43 billion** for release during July to October, actual expenditure remained far below target. Parliamentary development schemes were approved for **Rs 24.63 billion**, but **no funds were utilized**. A total of **Rs 70 billion** had been allocated for public representatives’ development initiatives in the ongoing fiscal year.
Sources revealed that, under **IMF pressure**, a **Rs 300 billion cut** in the development budget is expected. The slowdown in the federal PSDP persists despite the government achieving a **budget surplus and primary surplus** during this period.
During the first four months:
* Federal ministries and divisions spent **Rs 53.93 billion**,
* Provinces and special areas received **Rs 16.48 billion**,
* **Water resources projects** consumed **Rs 13.55 billion**,
* **HEC projects** used **Rs 5.20 billion**,
* **Federal education projects** accounted for **Rs 4.82 billion**,
* **Railway development** absorbed **Rs 4.32 billion**,
* **Planning Commission** utilized **Rs 3.90 billion**, and
* **Defence Division** projects received just over **Rs 1 billion**.
No funds were released to six ministries — including the **Cabinet Division**, **Commerce Division**, **Establishment Division**, **Parliamentary Affairs**, **Petroleum**, and **Religious Affairs**.
Sources warn that with IMF-imposed spending limits, Pakistan’s development pace may further slow down in the coming months.
