The decision comes in response to the rise in global oil prices due to geopolitical tensions, which forced the authorities to reallocate resources to manage fuel subsidies and stabilize the local market.
Islamabad: (Urdu Point / Urdu Point / Pakistan Point News – March 26)y(2026). Federalism government Pakistan on Thursday reduced the Public Sector Development Program (PSDP) for the current fiscal year by 10 percent, bringing from 1000 rupees one billion To 900 rupees one billion As part of cost-cutting measures.
The decision comes in response to the rise in global oil prices Prices Driven by geopolitical tensions, forcing authorities to reallocate resources to manage fuel subsidies and stabilize the local economy market.
During the past two weeks, government He understood price Pressure by maintaining gasoline Diesel prices were supported by subsidies, although high octane and kerosene prices saw notable increases.
Total 390 riyals one billion It has been set aside budget For emergency purposes. Part of this allocation was previously used for projects such as Danish schools, while the remaining funds are now being used to support fuel subsidies. However, officials have not clarified how much of this amount is still available.
in same Over time, policymakers are considering imposing targeted restrictions, including a possible smart lockdown, to mitigate risks associated with supply disruptions and inflationary pressures.
According to official figures, development allocations to ministries and departments were reduced by 68% one billionwhile an additional 32 Rs one billion A reduction was made in funds allocated to state-owned enterprises.
The Ministry of Finance has formally notified the Ministry of Planning, Development and Special Initiatives regarding the Rs 100 lakh one billion Reducing funding for the private sector development programme. This step was confirmed by the Minister of Planning Ehsan Iqbal He said everyone Departments have been directed to reduce their development expenditure by 10 per cent.
in the beginning, government It allocated Rs 685.9 lakh one billion For Ministries, Divisions and Departments under the Private Sector Development Programme, including Rs.583 one billion for domestic spending and 102 one billion In externally financed components. In addition to 314 riyals one billion It has been allocated to businesses, including infrastructure and energy-related entities, taking the total development expenditure to Rs 1,000. one billion.
During the first eight months of the fiscal year (July to February), ministries and departments used Rs 254.55 one billion Out of 583 rupees one billion distribution. Meanwhile, companies spent Rs 106.7 lakh one billion Out of 314 riyals one billion Aside to them.
Overall, the total SDP expenditure was Rs 361.2 lakh one billion During the period from July to February, reflecting moderation step Of use amid tightening financial conditions.