Pakistan has only utilized half of the allocated development budget for the fiscal year 2025-26 within the first 11 months, raising concerns about the country’s ability to stimulate economic growth. The Planning Ministry reported that of the Rs800 billion uplift budget, only Rs400 billion has been spent. This underutilization is attributed to a combination of factors, including stringent budgetary controls imposed by the International Monetary Fund (IMF) as part of a bailout package, and bureaucratic delays in project approvals and implementation. Several ministries, including those overseeing education, health, and communications, have shown particularly low spending rates. The finance ministry has expressed dissatisfaction with the slow pace of development expenditure, fearing it will hinder economic recovery. Officials suggest that the remaining funds may be released in the final quarter, but acknowledge the challenges in accelerating project implementation given the current economic climate and ongoing austerity measures. This situation highlights the difficulties Pakistan faces in balancing fiscal responsibility with the need for crucial infrastructure and social sector investments.
