Development funds remain largely underutilised

During the ongoing fiscal year 2024-25, the utilization of development funds has been exceptionally slow. In the first seven months—from July to January—federal ministries, divisions, and departments have spent only Rs220.19 billion out of the Rs628.89 billion released.

According to a government report, ministries and departments have only been able to use a limited portion of their allocated budgets. While Rs628.89 billion was released, only Rs220.19 billion was actually spent.

The total development budget for the fiscal year was set at Rs1,100 billion, but its utilization has fallen significantly short of expectations.

The Cabinet Division performed the worst, spending only Rs8.24 million out of the Rs48.64 billion released. Over seven months, Rs145 billion in development funds were allocated to provinces and special regions, yet only Rs59.56 billion was utilized.

The Ministry of Defence spent Rs1.17 billion, while the Ministry of Industries and Production used Rs301.6 million in development funds. The Ministry of Housing did not spend a single rupee out of the Rs4.11 billion released to it.

The Ministry of Health was allocated Rs24.75 billion, with Rs8.37 billion released, but only Rs3.46 billion was utilized in seven months. The Railways Division spent Rs12.23 billion, while the Ministry of Water Resources utilized Rs44.28 billion in development funds.

The National Highway Authority (NHA) was allocated Rs161.26 billion, of which Rs96.76 billion was released, but only Rs41.23 billion was spent. The National Transmission and Despatch Company (NTDC) used just Rs5 billion out of its Rs56.75 billion allocation.

According to the report, the Ministry of Communications, the Ministry of Commerce, the Narcotics Control Division, and the Ministry of Religious Affairs have not utilized any development funds so far.