By Ayesha Saba

The Pakistani government saved more than Rs1 billion in development costs in July by streamlining project scopes during scrutiny by the Central Development Working Party (CDWP), as part of efforts to improve value for money in public investment.

According to the Ministry of Planning, Development and Special Initiatives' Monthly Development Update – August 2026, available with Wealth Pakistan, project rationalisation carried out during CDWP appraisal resulted in savings of Rs1.015 billion during the month.

The savings were achieved by identifying and removing components considered non-essential during the appraisal of development proposals before their approval or recommendation to higher forums.

The document says the Planning Commission has strengthened scrutiny of development projects to ensure that proposed expenditures are justified and aligned with project objectives.

The approach is intended to improve the quality of public investment at a time when fiscal constraints require available development resources to be directed towards projects and components capable of producing stronger economic and social returns.

The Planning Ministry said the rationalisation exercise reflects an emphasis on value for money, with project costs being reviewed to eliminate unnecessary expenditures without compromising their core objectives.

The savings were recorded as the CDWP considered 27 agenda items in July, comprising 22 development projects, four position papers and one concept clearance proposal. Nine projects were approved and another nine were recommended to the Executive Committee of the National Economic Council (ECNEC).

Three projects were deferred during the month, while one project and one position paper were returned to their sponsoring agencies, indicating that proposals did not automatically proceed through the appraisal process.

The cost-rationalisation effort is particularly relevant given the government's decision to maintain a Rs1 trillion Federal Public Sector Development Programme for FY2026-27 while prioritising fast-moving and high-impact projects of national significance.

The National Economic Council has directed ministries and divisions to ensure efficient, transparent and prudent utilisation of development resources, with priority given to ongoing projects capable of producing significant economic and social benefits.

The Planning Ministry's development strategy also calls for resources to be concentrated on priority interventions rather than spread thinly across projects, with the objective of improving implementation and maximising the impact of limited public funds.

The Rs1.015 billion saved through project rationalisation in July provides an early indication of this approach being applied at the appraisal stage, where project design and proposed expenditures can be adjusted before substantial public resources are committed.

Credit: INP-WealthPk