Ayesha Saba

The Khyber Pakhtunkhwa government is maintaining steady progress across its externally-financed development portfolio, achieving around 45 percent overall progress, according to an official document available with Wealth Pakistan.

The document shows that gross disbursements reached $234 million in FY25 with the provincial government setting an ambitious overall disbursement target of approximately $350 million for FY26.

According to the document, as of January 1, 2026, total committed financing under the province’s externally-funded portfolio stood at $2,017 million, covering eight ongoing operations.

Out of this total commitment, $906 million has been disbursed so far, indicating around 45 percent utilization, while the undisbursed balance remains at $1,033.3 million.

The portfolio comprises six Investment Project Financing (IPF) operations with combined commitments of $1,499 million. Disbursements under these projects have reached $527.1 million.

In addition, two Program-for-Results Financing (PforR) operations account for $518 million in total commitments. Of this amount, $379 million has been disbursed, reflecting comparatively stronger performance under results-based financing mechanisms.

For FY26, the government has introduced a structured performance framework to ensure improved delivery. Under IPF operations, the base disbursement target has been set at $181 million, with a maximum target of $211.6 million. For PforR operations, the base target stands at $103.7 million, with a stretch target of $104 million. Combined, these figures translate into a base disbursement target of $284.7 million and a stretch target of $315.6 million.

As of the reporting date, FY26 disbursements total $54 million under IPF operations, while PforR disbursements have yet to commence for the current fiscal year.

Sustained financial absorption and accelerated execution will be critical to translating committed financing into tangible development gains, reinforcing the province’s commitment to delivering impactful infrastructure and service improvements.

Credit: INP-WealthPk