Pakistan 'accelerates' release of development funds

ISLAMABAD: As the current financial year 2024-25 is nearing to end, the Pakistan government has accelerated the provision of funds for federal development projects, ARY News reported on Wednesday, citing sources.

As per details, Pakistan government has released 81 per cent of the total development funds so far while over Rs424.19 billion have been spent so far.

Out of the Rs50 billion allocated for parliamentarians’ schemes in the current fiscal year, Rs48 billion have already been released, with approximately Rs35 billion spent so far.

Sources add that between July 1, 2024, and April 15, 2025, the government approved the release of Rs. 889 billion for federal development projects.

To date, 81% of the total allocated federal development budget has been issued, amounting to Rs424.19 billion in expenditures, sources said.

While the initial federal Public Sector Development Programme (PSDP) for the year was set at Rs1,400 billion, it was revised to Rs1,100 billion under IMF conditions and performance targets.

Earlier, it was reported that the International Monetary Fund (IMF) has demanded Pakistan to exclude provincial development projects from the federal development budget.

According to sources, the international money lender has urged the federal government to cease funding matters devolved to provinces under the 18th Constitutional Amendment.

Sources revealed that the IMF’s directive has compelled the federal government to remove 168 provincial projects from the upcoming federal budget.

Sources further said that these 168 provincial projects, currently part of the federal development budget, have been progressing slowly.

A total cost of these projects is estimated at PKR 1,100 billion, with the federal government having already spent PKR 300 billion. The IMF has prohibited further expenditure of PKR 800 billion on these projects, sources added.