Ayesha Saba

Public development spending gathered pace during the current fiscal year, with expenditures under the Public Sector Development Programme (PSDP) reaching Rs272.8 billion by the end of January, reflecting steady implementation of government-funded projects across key sectors.

According to the Monthly Development Update (February 2026) issued by the Economic Policy Wing of the Ministry of Planning, Development and Special Initiatives, ministries and divisions sanctioned Rs338.2 billion during the period, out of which Rs272.8 billion had been utilized according to records in the SAP system.

The PSDP for FY2025-26 carries an authorized size of Rs1 trillion, with allocations spread across infrastructure, social services, governance and technology sectors. The spending pattern shows a strong emphasis on infrastructure development, which accounted for the largest share of the outlay.

The infrastructure sector received Rs614.7 billion, representing 61 percent of the total PSDP allocation. Of this, Rs156.43 billion had been spent by the end of January. Within infrastructure, the transport and communications sector secured the highest allocation of Rs325.62 billion and reported expenditure of Rs80.47 billion, underscoring priority given to connectivity and mobility projects.

The water sector, with an allocation of Rs97.8 billion, recorded expenditure of Rs34.33 billion, while the physical planning and housing sector utilized Rs30.93 billion against an allocation of Rs68.64 billion. The energy sector reported spending of Rs10.69 billion out of Rs122.65 billion allocated for the year.

The social sector received Rs178.25 billion, accounting for 18 percent of total PSDP funds. Within this category, the education sector, including higher education, was allocated Rs65.30 billion and recorded expenditure of Rs24.38 billion. The health and nutrition sector utilized Rs3.66 billion against an allocation of Rs16.54 billion.

Other sectors also showed progress. Governance-related projects were allocated Rs10.28 billion, with Rs3.01 billion spent, while the science and information technology sector recorded Rs8.37 billion in expenditure against an allocation of Rs42.74 billion, reflecting continued investment in digital transformation and innovation initiatives.

In addition, the industries and production sector received Rs6.76 billion, with spending directed toward food, agriculture and industrial development projects. Special Areas, including Azad Jammu and Kashmir and Gilgit-Baltistan, were allocated Rs81.8 billion, while the merged districts were earmarked Rs65.44 billion to support regional development and integration.

The report notes that the sanctioning and utilization of funds reflect ongoing implementation of approved projects aimed at strengthening infrastructure, improving service delivery and supporting regional connectivity. Steady spending during the first seven months indicates continued progress toward annual development targets.

By channeling resources into priority sectors, the PSDP seeks to accelerate project execution and deliver socio-economic benefits across the country. The emphasis on infrastructure highlights the government’s strategy to build foundational assets that can stimulate growth and enhance productivity over the long term.

With Rs272.8 billion already utilized by January, development spending remains a key instrument for driving public investment and supporting national development objectives during FY2025-26.

Credit: INP-WealthPk