The federal government authorised development funds amounting to Rs220.721 billion during the first quarter of fiscal year 2026-27 under the Public Sector Development Programme (PSDP), according to the latest data from the Ministry of Planning, Development and Special Initiatives. The authorisation covered the period from July to September 2026 and was made against the government’s total PSDP allocation of Rs1 trillion for the full fiscal year. During the same three-month period, actual development expenditure stood at Rs61.320 billion, indicating the amount of funds that had been utilised from the authorised development programme by the end of September.
The PSDP allocation for 2026-27 includes Rs682.485 billion for federal ministries and divisions, while Rs312.515 billion has been allocated for corporations. The overall programme also contains Rs4 billion for project liabilities and Rs1 billion for new initiatives under CPEC 2.0. The allocation provides funding for a range of development activities covering water resources, education, railways, information technology, health, housing, communications, power and other sectors. The first-quarter authorisation of Rs220.721 billion represents the portion of the annual development programme approved for implementation during the opening quarter of the fiscal year.
Among federal ministries and divisions, the Water Resources Division received the highest development funds authorisation during the first quarter, amounting to Rs86.517 billion. The Cabinet Division followed with Rs30 billion, while Rs22.150 billion was authorised for Provinces and Special Areas. The scale of funding for the Water Resources Division reflects the significant share of development resources directed toward projects in the water sector under the federal development programme during the period.
The Higher Education Commission (HEC) has been allocated Rs46 billion for the fiscal year, of which Rs7.162 billion was authorised during the first quarter and Rs2.741 billion was spent. The Federal Education and Professional Training Division received an annual allocation of Rs36.312 billion, with Rs9.078 billion authorised and Rs6.033 billion spent between July and September. The Planning, Development and Special Initiatives Division had an allocation of Rs22.626 billion, against which Rs2.785 billion was authorised and Rs1.561 billion was spent during the quarter.
The Railways Division was allocated Rs40.658 billion for development projects, with Rs5.005 billion authorised and Rs2.347 billion spent during the first quarter. The Information Technology and Telecommunication Division received an annual allocation of Rs19.580 billion, including Rs9.801 billion in foreign assistance. Of this amount, Rs2.410 billion was authorised during the quarter, while expenditure reached Rs418.34 million. The Interior Division had an allocation of Rs21.825 billion, with Rs3.274 billion authorised and Rs345.98 million spent during the same period.
The National Health Services, Regulations and Coordination Division was allocated Rs16.065 billion, of which Rs9.639 billion was authorised and Rs644.85 million spent in the first quarter. Housing and Works Division received an annual allocation of Rs16.395 billion, with Rs787.14 million authorised and Rs322.33 million spent. Other federal allocations included Rs10.903 billion for the Defence Division, Rs11.570 billion for the Revenue Division, Rs6.658 billion for Industries and Production, Rs4.183 billion for National Food Security and Research, and Rs3.567 billion for Science and Technological Research.
Further allocations included Rs3.019 billion for the Information and Broadcasting Division, Rs2.478 billion for Climate Change and Environmental Coordination, Rs2.403 billion for Law and Justice, and Rs1.780 billion for Maritime Affairs. These allocations form part of the wider federal development programme and cover projects and initiatives across different areas of public infrastructure, administration, education, technology, environmental management and economic activity.
Among corporations, the National Highway Authority (NHA) received the largest annual allocation, with Rs224.515 billion earmarked for its development programme, including Rs59.250 billion in foreign assistance. During the first quarter, Rs22.384 billion was authorised for NHA projects, while Rs9.295 billion was spent. The Power Division entities, including NTDC and PEPCO, were allocated Rs88 billion, of which Rs76.608 billion comprises foreign assistance. Against this allocation, Rs10.832 billion was authorised and Rs8.171 billion was spent during July-September.
The government has also set aside Rs4 billion for project liabilities and Rs1 billion for new initiatives under CPEC 2.0. Taken together, the first-quarter figures show the distribution of development resources across federal ministries, divisions and major corporations under the Rs1 trillion PSDP framework for FY2026-27. With Rs220.721 billion authorised and Rs61.320 billion spent during the first quarter, development spending will continue to depend on the release, implementation and utilisation of funds across the various projects included in the annual programme.
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