PSDP fund utilisation rises to 36% amid increased disbursements for MNAs’ projects

ISLAMABAD: The utilisation of funds under the Public Sector Development Programme (PSDP) has seen a notable increase, reaching 36 percent during the first eight months (July-February) of the current fiscal year. This rise is largely attributed to significant disbursements for development schemes initiated by ruling party Members of the National Assembly (MNAs).

According to official data, the government began large-scale releases for parliamentarians’ schemes, known as the Sustainable Development Goals Achievement Programme (SAP), after the initial five months of the fiscal year. By the close of February, the Planning Commission had authorised nearly 82 percent (Rs57.23 billion) of the annual SAP allocation of Rs70.26 billion. Of this, approximately Rs39.5 billion—representing 56 percent of the SAP budget—had been spent.

These funds were both authorised and utilised within a relatively short period of about four months, making SAP the fastest-executed programme in the current fiscal cycle. The overall increase in PSDP utilisation is in contrast to the performance of line ministries, which have continued to lag behind their planned release schedules.

In addition, the data shows that only Rs90.6 billion out of the Rs249.2 billion allocated for development projects in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) has been spent so far.

The surge in fund utilisation for MNAs’ projects comes as the government seeks to accelerate progress on development initiatives, particularly those aligned with the Sustainable Development Goals. However, the relatively slow pace of spending by line ministries highlights ongoing challenges in the broader implementation of the PSDP.