News
Pakistan Utilises Only 10.4% of FY27 Development Budget, Raising Concerns Over Infrastructure Projects
By Mariam Khan
Real Estate Analyst
2 min read
Pakistan spent only Rs103.87 billion of the Rs1 trillion federal Public Sector Development Programme (PSDP) allocation between July and October 2026, according to figures from the Ministry of Planning and Development reported on November 11. That is about 10.4 percent of the annual allocation (our own calculation). The figures do not establish that any specific project has been delayed. Planning data is published by the Ministry of Planning, Development and Special Initiatives.
The Figures
The National Highway Authority spent Rs13.3 billion, which the report puts at 5.8 percent of its annual Rs225 billion allocation. Our own calculation from the two amounts gives about 5.9 percent, a small difference that may come from rounding. The power sector used Rs16 billion, approximately 18 percent of its allocation. The report links this slow spending to a reported first-quarter budget surplus. The reports we have seen do not give the figures for other agencies or say how last year's spending in the same four months compared, so we do not make that comparison.
What Is Not Known
The report does not say why spending is slow, which projects have been held back or whether the government expects to catch up later in the year. Other figures in recent reports describe the federal development budget differently, for example as Rs1.126 trillion. We have not reconciled the two, so readers should take the allocation from the ministry's own data. Finance policy is published by the Ministry of Finance.
Why This Matters for Property
Slow public development spending could delay road construction, transport connectivity, power infrastructure and other projects that support housing societies, commercial developments and property investment. The first four months are only a third of the year, and spending often rises later, so the figure is not a forecast for the year. No effect on property prices has been established.
What This Means for Developers and Investors
Developers who rely on a public road or utility project should look at the agency's progress and not the allocation. The signals to watch are spending figures for the first half of the year, the NHA's release of funds and any revised allocation.