Officials said the Public Sector Development Program has been reduced from Rs1000 billion to Rs837 billion after two phases of budget cuts.
According to officials from the Ministry of Planning, the government first reduced the development budget by Rs100 billion. Later, another Rs73 billion was removed from the allocation.
Authorities said the decision was mainly taken to meet conditions set by the IMF while also managing financial pressures caused by regional instability and global economic uncertainty.
The biggest cut has been made in road construction projects. Funds for roads were reduced by Rs38 billion. Water related development projects also faced major reductions, with their funding decreased by Rs23 billion.
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Meanwhile, provincial development schemes were cut by Rs22.5 billion as part of the overall spending adjustments. Despite the reductions, most projects linked to the Ministry of Planning and development schemes recommended by members of parliament have been kept in the program.
Officials also revealed that although the development budget for the current fiscal year was originally approved at more than Rs1000 billion, only about 41 percent of the allocated funds have been used during the first nine months.
Experts say this slow spending pattern also influenced the government’s decision to reduce the overall development allocation. Authorities believe the revised budget will help Pakistan manage financial commitments and maintain economic stability while continuing some key development projects.