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ISLAMABAD, Jul 10 (APP):Federal Minister for Planning, Development & Special Initiatives, Ahsan Iqbal said here on Thursday that Pakistan had achieved a historic milestone in development spending, crossing Rs1 trillion, despite tight fiscal constraints.
Speaking at the launch of the Monthly Development Report, the minister said the government had successfully utilized approximately Rs 1,146 billion in development expenditure — the highest in Pakistan’s history.
This is a moment of immense pride and a significant achievement, he said, adding for the first time ever, Pakistan has closed its development budget with such high utilization, reflecting our unwavering commitment to development as a national priority.
The minister explained that this accomplishment came despite substantial budgetary pressures. The Public Sector Development Programme (PSDP), initially set at Rs 1,400 billion, was reduced to Rs 1,100 billion due to macroeconomic constraints. Even so, over 95% of the revised allocation was efficiently utilized.
This efficiency sends a strong message that this was a pro-development government, he said, adding in a challenging fiscal environment, achieving such a high utilization rate was a testament to the dedication of all ministries and the Planning & Development team, who worked with exceptional commitment.
He cautioned that any underutilization this year would have shifted financial burdens to the next fiscal year, where the PSDP has already been further reduced to Rs 1,000 billion.
We had no fiscal space to leave Rs 200-300 billion unutilized, Iqbal noted. “That would have created a backlog and severely impacted our development portfolio. Thankfully, we avoided that scenario through discipline and coordination,” he said.
Ahsan Iqbal emphasized that public sector development is the primary engine for economic momentum in Pakistan. When the government invests in infrastructure—universities, roads, power, and water projects—it triggers growth across key sectors like construction, logistics, cement, and materials. It creates jobs and drives private sector investment.
He also linked the achievement to broader economic stabilization under the government’s flagship “Uraan Pakistan” initiative, launched by Prime Minister Shehbaz Sharif.
“Under Uraan Pakistan, we are witnessing a positive turnaround in economy,” he said. “One of the biggest indicators is inflation, which dropped to 4.5%, the lowest in nine years. That’s a 23.4% decrease from last year — a rare feat globally.”