The federal government has revised the schedule for the upcoming budget for the fiscal year 2026-27, with the presentation now expected on June 10 instead of June 5, sources said on Tuesday. According to official sources, the change comes amid ongoing negotiations with the International Monetary Fund (IMF) over the Public Sector Development Programme (PSDP) […]
PSDP
PM seeks bigger development budget ahead of FY27
ISLAMABAD: Prime Minister Shehbaz Sharif has directed economic authorities to increase the proposed federal Public Sector Development Programme (PSDP) allocation for the fiscal year 2026-27 by Rs200 billion, signalling the government’s intention to boost spending on development projects despite fiscal constraints. Read More: Provinces propose record Rs3.14 trillion development budget According to sources, the prime minister […]
Federal development budget slashed by Rs173bn amid IMF pressure
Pakistan’s federal development budget has been reduced by Rs173 billion amid pressure from the International Monetary Fund and the economic impact of ongoing Middle East tensions, officials said on Wednesday. Read More: Federal development spending remains slow in first five months According to the Ministry of Planning, the Public Sector Development Programme (PSDP) has been cut […]
Pakistan cuts development budget by 10% to fund fuel subsidy
ISLAMABAD — The government of Pakistan has reduced the current fiscal year’s development budget by 10%, trimming the Public Sector Development Programme (PSDP) from Rs1,000 billion to Rs900 billion, with the savings earmarked for austerity measures and fuel subsidies, The News reported on Thursday. Read More: Pakistan proposes Rs4,083 billion national development budget The decision comes amid […]
Debt servicing outpaces defence, development spending in H1 of CFY26
ISLAMABAD: Debt servicing in Pakistan continued to outstrip spending on defence and development during the first half of the current fiscal year (July–December CFY26), raising concerns over fiscal pressures under the International Monetary Fund (IMF) programme, The News reported on Saturday. Read More: Pakistan hits milestone by repaying debt early According to data released by the Ministry […]
Development fund utilisation jumps to 21% in first half
The utilisation of Pakistan’s federal development funds surged to 21 per cent in the first half of the current fiscal year (FY26), up from 9 per cent in the previous month, according to the Ministry of Planning and Development. Read More: SECP operationalises Capital Market Development Fund Between July and December 2025, ministries and divisions sanctioned […]
IMF urges Pakistan to give 30% weight to climate in PSDP
The International Monetary Fund has urged Pakistan to increase climate change weighting to at least 30% in all PSDP projects. It also called for public disclosure of project selection scores. The move aims to improve infrastructure planning and align spending with the National Climate Change Policy. In its second review under the Extended Fund Facility, […]
Big employment boost: 95,000 Jobs coming soon across Pakistan
Pakistan is set to generate more than 95,000 jobs over the next five to seven years, the Ministry of Planning said. The employment surge will come from major development projects across multiple sectors. Officials said these initiatives aim to boost national growth and provide opportunities for citizens. The Central Development Working Party (CDWP) approved 12 […]
PSDP spending lags as government prioritises fiscal discipline
ISLAMABAD: Spending under Pakistan’s Public Sector Development Programme (PSDP) is moving slowly, with the government keeping disbursements tight to meet fiscal targets set by the International Monetary Fund (IMF). In the first four months (July–October) of FY26, total PSDP expenditure reached only Rs76 billion — just 7.6pc of the Rs1 trillion annual allocation — falling […]
Govt mulls Rs300bn cut in PSDP
ISLAMABAD – The federal government is reportedly considering a Rs300 billion reduction in the Public Sector Development Programme (PSDP) for the current fiscal year, slashing the national development budget by nearly 30 percent, from Rs1,000 billion to Rs700 billion. Sources in the Planning Commission revealed that the proposed cut is being weighed due to lower-than-expected revenue […]