The federal Public Sector Development Programme of Pakistan registered total actual expenditure of 916.02 billion rupees for the fiscal year running from July to June 2025-26. This spending level exceeded the original annual allocation of 820.51 billion rupees by 11.64 percent, according to official ministry and division performance summaries released by the government. The budget overshoot occurred despite overall authorized funding remaining marginally below the baseline budget at 820.50 billion rupees. The discrepancy highlights significant supplementary spending that surpassed both initial allocation targets and official authorization limits over the course of the twelve-month reporting period.
A breakdown of operational spending reveals that federal ministries collectively spent 611.10 billion rupees against an assigned budget allocation of 565.14 billion rupees, marking a net cost overrun of 8.13 percent. Meanwhile, major state-owned corporate entities embedded within the development framework recorded even higher percentage increases. The two primary corporations, namely the National Highway Authority and the Power Division managing NTDC and PEPCO projects, jointly expended 304.92 billion rupees compared to an initial allocation of 255.37 billion rupees, representing a sharp upward variation of 19.4 percent.
Among federal ministries, the Water Resources Division emerged as the main driver of budgetary overruns. The division disbursed 137.49 billion rupees against a baseline allocation of 101.64 billion rupees, reflecting a substantial increase of 35.27 percent. Similarly, the Railways Division recorded one of the most pronounced deviations relative to its planned budget, nearly doubling its spending. Actual disbursements for railway infrastructure development reached 35.14 billion rupees against an original budget allocation of 18.56 billion rupees, representing an expansion of 89.36 percent over projected targets.
Within the corporate category, the Power Division, covering the National Transmission and Despatch Company and various public electricity supply companies, reported spending of 122.55 billion rupees against an assigned allocation of 73.14 billion rupees. This resulted in an overrun of 67.56 percent as power sector grid and transmission initiatives required additional financial outlays. In contrast, the National Highway Authority managed its fiscal envelope with precision, expending 182.36 billion rupees against a set allocation of 182.23 billion rupees, which translated into a minimal variance of just 0.07 percent.
While several key sectors recorded spending overruns, other government divisions reported expenditures below their earmarked limits. The Cabinet Division, which represents one of the largest single budget lines among federal ministries, recorded total expenditure of 59.43 billion rupees against an allocation of 63.24 billion rupees, resulting in a shortfall of 6.02 percent. Allocations directed toward provincial authorities and special administrative regions also reflected minor under-utilization, with total spending coming in at 192.50 billion rupees compared to an assigned budget allocation of 195.40 billion rupees.
Mixed spending dynamics were visible across various other federal administrative units. The Revenue Division reported actual expenditure of 14.81 billion rupees, coming in 21.28 percent above its original allocation of 12.21 billion rupees. The Petroleum Division registered spending of 612.48 million rupees compared to an allocation of 568.58 million rupees, higher by 7.72 percent. On the lower end, the Kashmir Affairs, Gilgit-Baltistan and SAFRON Division spent 122.97 million rupees against a budget of 190.00 million rupees, marking a shortfall of 35.28 percent. The Religious Affairs and Interfaith Harmony Division reported no actual spending against its allocated budget of 49.62 million rupees. Meanwhile, educational authorities kept spending closely aligned with allocations, with the Higher Education Commission disbursing 34.90 billion rupees against a 34.91 billion rupee allocation, and the Federal Education and Professional Training Division spending 27.04 billion rupees against a 26.81 billion rupee allocation.
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