Only Rs528 Billion of Development Budget Utilized Amid IMF Constraints
ISLAMABAD: Pakistan’s development budget has been significantly affected by the country’s IMF-supported economic program, with official documents revealing a substantial shortfall in the utilization of allocated development funds.
According to a working paper presented before the Annual Plan Coordination Committee (APCC) meeting chaired by Federal Minister for Planning Ahsan Iqbal, the government had allocated Rs1 trillion under the Public Sector Development Programme (PSDP). However, ministries, divisions, and administrative institutions were able to utilize only Rs528 billion between July 2025 and May 25, 2026.
Addressing the APCC meeting, Ahsan Iqbal said that funding for development projects in Pakistan has been steadily declining. He noted that public investment has fallen from 2.6 percent of GDP to less than 0.6 percent.
The planning minister revealed that PC-I documents for projects worth Rs5 trillion are currently under consideration, while an estimated Rs10 trillion would be required to complete ongoing development schemes across the country.
He further stated that resources available for development projects have been shrinking continuously since fiscal year 2018. In contrast, provincial governments have seen an increase in their development budgets, making them relatively stronger in terms of development spending.
Iqbal added that federal ministries had sought approximately Rs3 trillion for development projects in the upcoming fiscal year. However, the federal development program remains at around Rs1 trillion—the same level as in 2018—meaning that only selected priority projects will be able to move forward.
