Civil Govt spending up 12.5% in 9 months

May 14, 2026 (MLN): Pakistan’s Civil Government expenditure increased by 12.5% during the first nine months of FY2025-26, with officials clarifying that the rise was primarily driven by employee compensation adjustments and allocations for critical public health programmes rather than a significant increase in operational spending.

Civil Government expenditure stood at Rs559bn during July–March FY2024-25, comprising Rs388bn in employee-related expenditure and Rs171bn in non-employee-related expenditure, according to the press release.

During the corresponding period of FY2025-26, total Civil Government expenditure rose to Rs629bn, including Rs427bn in employee-related expenditure and Rs202bn in non-employee-related expenditure.

However, the overall increase in Civil Government expenditure amounted to 12.5%.

A breakdown of the expenditure showed that employee-related expenditure increased by approximately 10%, mainly due to salary and pay adjustments announced in the federal budget.

Non-employee-related expenditure increased from Rs171 billion to Rs202bn, showing a rise of Rs31bn during the period under review.

However, officials noted that out of the Rs31bn increase in non-employee expenditure, Rs29bn was allocated during the current fiscal year for the Expanded Programme on Immunization (EPI), a national public health initiative aimed at protecting children against preventable diseases.

After adjusting for the EPI allocation, the actual increase in non-employee operational expenditure remained around Rs2bn, according to the clarification.

Officials further stated that presenting aggregate Civil Government expenditure figures without separating employee-related costs and public welfare allocations does not provide a complete or accurate picture of federal government spending trends.

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