The federal government has fallen short of its target to complete development projects during the outgoing fiscal year, with official documents showing that a lack of timely funding hindered progress on numerous initiatives.
According to the documents, the government had set a target to complete 194 development projects by June 2026, but financial constraints prevented many of them from reaching completion.
The government had planned to complete 194 development projects with a total cost of Rs592 billion during fiscal year 2025-26.
For these projects, Rs76 billion had been allocated during the current fiscal year, while the ministries concerned had assured authorities that the schemes would be completed on schedule by June 2026.
However, the completion target could not be achieved as funding challenges emerged throughout the year.
Lack of funds slowed progress
According to official documents, insufficient funding became the main obstacle to completing development projects on time.
The Ministry of Water Resources, the Power Division, the Revenue Division and SUPARCO had sought additional financial allocations during the fiscal year.
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However, due to overall financial difficulties, the government was unable to approve additional funding requests totaling Rs525 billion.
Additional allocations and transfers
From July 2025 to May 2026, Rs53 billion was allocated for 109 development projects. The government also approved technical supplementary grants worth Rs36 billion for 20 projects.
According to the documents, funds were transferred between sectors to meet the requirements of important national projects and maintain progress on priority schemes.
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The documents show that work is currently underway on 786 development projects under the Public Sector Development Programme (PSDP) across the country.
So far, a total of Rs3,497 billion has been spent on these projects, reflecting the scale of ongoing public sector development activities.
Most PSDP funds released during the year
The revised PSDP allocation for the current fiscal year stood at Rs837 billion. Out of this amount, Rs835 billion was released to ministries and divisions for project implementation.
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The release schedule was spread throughout the year, with 15% of funds released during the first quarter, 20% in the second quarter, 25 percent in the third quarter and 40% in the fourth quarter.
Spending reaches Rs528bn by May
As of May 25, 2026, ministries and divisions had reported expenditures of Rs528 billion.
Despite substantial fund releases and ongoing spending, the government was unable to achieve its objective of completing all targeted projects before the end of the fiscal year.
The shortfall highlights the challenges facing Pakistan’s development sector, where funding constraints continue to affect the timely execution of major infrastructure and public welfare projects.
