Pakistan has spent only a little more than half of its annual development budget in the first ten months of the financial year, mainly because the country is facing economic pressure and weak tax collection.
Between July 2025 and April 2026, the government spent around Rs469.85 billion out of a total development budget of Rs833.34 billion, which comes to about 56 percent, according to the Planning Commission.
Some government departments spent very little of their allocated funds. For example, the Communications Division used only about 20 percent of its budget, while the Interior Division spent about half.
The Religious Affairs Division had over Rs400 million available but spent nothing at all. The National Highway Authority used less than half of its funds, and the Power Division spent a bit more than half.
Experts say development spending is low because the government has limited room in the budget and is not earning enough revenue.
One analyst noted that the situation has improved only slightly compared to last year. Balancing development work with keeping spending under control remains a major challenge for Pakistan as it tries to manage economic reforms and external financing needs.
Looking ahead to next financial year, the Finance Ministry has set a development spending limit of Rs1.126 trillion, which is far less than the Rs2.9 trillion requested by the Planning Ministry.
In fact, different government departments had asked for nearly Rs4 trillion in total, but the Finance Ministry said it could not afford that due to tight finances.
