BUDGET 2026-27: Only half of FY26 uplift budget spent in 11 months (opens original article in a new tab)

The Pakistani government utilised only 52.4% of the Public Sector Development Programme budget in the first 11 months of FY26, with significant cuts to fund fuel subsidies amid rising oil prices.

• PSDP utilisation from July 2025 to May 2026 was Rs529.8bn, 52.4% of the original Rs1.01tr allocation.
• Government cut PSDP by Rs173bn for fuel subsidies after rising oil prices, reducing the allocation to Rs837bn.
• Special regions like Azad Kashmir and Gilgit-Baltistan spent only 62% of their Rs249.2bn allocation on development activities.