Federal PSDP FY26 expenditure overshoots allocation by 12%

July 27, 2026 (MLN): Pakistan's federal Public Sector Development Programme (PSDP) recorded actual expenditure of Rs916.02bn for July-June 2025-26, exceeding the original allocation of Rs820.51bn by 11.64%.

The overshoot came even as authorized funds stood marginally lower at Rs820.5bn, pointing to significant supplementary spending beyond both allocation and authorization limits during the fiscal year.

Federal ministries collectively spent Rs611.10bn against an allocation of Rs565.14bn, an overrun of 8.13%, while the two corporations included in the PSDP National Highway Authority (NHA) and Power Division (NTDC/PE%O) together spent Rs304.92bn versus an allocation of Rs255.37bn, up 19.4%, according to the government’s ministry/division-wise summary.

The Water Resources Division emerged as the single largest driver of the ministry-side overrun, with expenditure of Rs137.49bn against an allocation of Rs101.64bn, a jump of 35.27%.

The Railways Division nearly doubled its allocated spending, with expenditure of Rs35.14bn against an allocation of Rs18.56bn, up 89.36%.

Within corporations, Power Division (NTDC/PEPCO) spent Rs122.55bn against an allocation of Rs73.14bn, higher by 67.56%, while NHA's expenditure of Rs182.36bn stayed broadly in line with its Rs182.23bn allocation, up just 0.07%.

The Cabinet Division, one of the largest single line items among federal ministries, recorded expenditure of Rs59.43bn against an allocation of Rs63.24bn, a shortfall of 6.02%, making it one of the notable underspending divisions despite its sizeable allocation.

Same goes for Provinces and special area, which recorded expenditure of Rs192.5bn against Rs195.4bn of allocation.

Among other notable divisions, the Revenue Division's expenditure of Rs14.81bn came in 21.28% above its Rs12.21bn allocation, while the Petroleum Division spent Rs612.48mn versus an allocation of Rs568.58mn, higher by 7.72%.

Several divisions, however, recorded expenditure below allocation. The Kashmir Affairs, Gilgit Baltistan & SAFRON Division spent Rs122.97mn against an allocation of Rs190mn, a shortfall of 35.28%, while the Religious Affairs & Inter Faith Harmony Division, allocated Rs49.62mn, recorded no reported expenditure.

The Higher Education Commission and the Federal Education & Professional Training Division saw expenditure closely tracking allocation, at Rs34.90bn and Rs27.04bn respectively, against allocations of Rs34.91bn and Rs26.81bn.

Copyright Mettis Link News