By Ayesha Saba

 The expenditure under the Public Sector Development Program (PSDP) reached Rs40.3 billion in the first quarter of FY2025-26, marking a 16.09% increase from Rs34.8 billion spent during the same period last year (FY2024-25). According to the latest monthly development update for October, issued by the Ministry of Planning, Development and Special Initiatives, Rs17.3 billion had been utilized in the infrastructure sector as of September 30, 2025. Within the broader sector, transport and communication accounted for Rs2.6 billion in spending.

The energy sector and the physical planning and housing sector recorded expenditures of Rs1.5 billion and Rs2.4 billion, respectively, against their allocations of Rs122 billion and Rs102.4 billion. Meanwhile, the water sector with an allocation of Rs102.4 billion incurred an expenditure of Rs10.8 billion during the same period. In FY2025-26, the social sector received Rs167.1 billion (17% of the total outlay). Of this, Rs58.5 billion was earmarked for education, including the HEC, which spent Rs4.4 billion. The health and nutrition sector utilized Rs 0.1 billion against an allocation of Rs16.8 billion, while Rs21.7 billion was set aside under the category of “Others”, with spending of Rs0.9 billion to date.

The Science and IT sector received an allocation of Rs37.6 billion, underscoring the government’s continued focus on digital transformation, innovation infrastructure, and applied research. So far, the sector has incurred Rs1.1 billion in expenditures, reflecting progress toward strengthening Pakistan’s technology ecosystem. The industries and production sector received Rs7.9 billion in funding, including Rs5.1 billion for food and agriculture and Rs2.9 billion for industrial development. The food and agriculture sector spent an amount of Rs0.3 billion, and the industries sector incurred an expenditure of Rs0.1 billion up to September.

The governance sector – aimed at fostering transparency, improving institutional efficiency, and creating a favorable environment for investors – was allocated Rs11.2 billion, of which Rs0.5 billion has been utilized so far. The report further highlights the foreign aid component of the PSDP in FY2025-26, with 86 foreign-assisted projects getting a total allocation of Rs229 billion, representing 23% of the overall PSDP.

As of 30th September 2025, the ministries and divisions reported foreign aid expenditures of Rs3.3 billion. These disbursements were made in line with the Finance Division’s revised accounting procedures, ensuring transparency and efficiency in managing foreign-funded development projects. Overall, the first-quarter performance reflects the government’s commitment to advancing inclusive growth, infrastructure modernization, and social sector development, while maintaining fiscal discipline and transparency in the use of public funds.

Continued progress in priority sectors, particularly infrastructure, education, IT, and governance, signals a steady movement toward achieving the objectives outlined in the FY2025-26 national development agenda.

Credit: INP-WealthPk