ISLAMABAD: The utilisation of Public Sector Development Programme (PSDP) funds has inched up to 27 per cent in the first seven months of 2025-26, up from 21pc a month earlier.
As of Jan 31, ministries and divisions have sanctioned an amount of Rs338.2 billion against which Rs272.8bn has reported expenditure”, the Ministry of Planning and Development said in its Monthly Development Outlook for February. This works out to 27pc of the Rs1 trillion annual PSDP allocation.
The utilisation, however, remains well behind the disbursement schedule approved by the government, but is relatively higher than last year. The PSDP expenditure in the first seven months of the last fiscal year had stood at Rs220bn, accounting for 20pc of the Rs1.096tr.
Under the mechanism announced by the Ministry of Finance for FY26, the PSDP spending should have crossed at least Rs443bn (43pc) of the allocation.
Utilisation in the infrastructure sector amounted to Rs156.4bn over seven months, almost 25pc of its budget allocation of Rs614.717bn. Within the infrastructure sector, the transport and communication sector received the highest allocation of Rs325.62bn, but it could spend only Rs80.5bn, or 24.7pc.
The energy sector and the physical planning & housing sector recorded expenditures of Rs10.69bn (just 8.5pc) and Rs30.93bn (45pc), respectively, against allocations of Rs122.65bn and Rs68.643bn, respectively.
The water sector, with an allocation of Rs97.8bn, reported expenditure of Rs34.33bn as of January 31. The social sector was allocated Rs178.25bn, of which Rs65.302bn was allocated to the education sector, including Higher Education, which spent Rs24.38bn.
The health and nutrition sector utilised Rs3.66bn against Rs16.54bn, while ‘others’, smaller sectors, utilised Rs4.13bn against Rs26.4bn. The science and IT sector utilised Rs8.37bn against Rs42.744bn, while the food & agriculture sector spent Rs1.1bn.
Published in Dawn, February 10th, 2026